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Government to hold credit card summit

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Date: 25 Nov 2008

Secretary of State for Business Peter Mandelson and Consumer Affairs Minister Gareth Thomas will hold a Summit with the credit card industry tomorrow to address mounting concerns that credit card borrowers aren't getting a fair deal in the downturn.

The Prime Minister announced plans to bring the credit card industry in after seeing evidence of a new practice of card lenders significantly hiking up people's rates, as well as broader concerns about the failure of many companies to pass on cuts in interest rates to borrowers struggling to repay their debts.

Consumer Affairs Minister Gareth Thomas said:

"The Government is deeply concerned that borrowers aren't getting a fair deal. That's why we've taken swift action to bring the industry in to look at how costs are being applied to people's existing debts.

"We want to work constructively with industry to draw up a set of principles that will enable them to keep lending and will also ensure borrowers are treated fairly and in a way that best helps them pay off their debts"

The Government recently brought in legislation to tackle unfair practices and has strengthened the Office of Fair Trading's enforcement powers so that they can take swift and effective action to prevent borrowers being treated unfairly.

The Summit will take place at the Department for Business at 1pm on Wednseday afternoon.

Notes

1) The Prime Minister announced the Government's intention to hold a summit with the credit card industry on 11 November following mounting evidence of irresponsible practices and a failure of the industry to pass on interest rate cuts to their customers.

2) Consumer Affairs Minister Gareth Thomas will chair the Summit, which will involve directors and chief executives from credit card providers. Trade associations representing financial institutions, regulators and consumer groups are attending.

3) The Government will be working with industry to:
-establish clear and fair principles to apply to the costs people face on their existing debt,
-to ensure that new responsible lending is entered into, and
-that households who get into unforeseen difficulty over this tough period are given support.


About the Author

Crown Copyright. Material taken from the BERR- Department for Business, Enterprise and Regulatory Reform replacing DTI - Department for Trade and Industry. Reproduced under the terms and conditions of the Click-Use Licence.


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Article Published/Sorted/Amended on Scopulus 2008-11-26 08:00:53 in Business Articles

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