New Proposals for Credit Card Industry
Statements should include debt warnings, plus extra credit checks
1st July 2004
The government has proposed two changes to the way credit card companies operate, following last month's announcement of Consumer Credit Act reform.
Firstly, credit card statements should include a warning that by only paying off the minimum each month, customers will end up paying more in interest charges than if they made a substantial repayment.
Secondly, the government proposes that a new credit check should be carried out before a card's credit limit is raised, to help ensure that a customer's potential debt levels stay manageable.
The measures have been welcomed by the industry, which claims that many of its members are already voluntarily committed to implementing the proposals.
Read More: BBC
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