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Credit card association 'makes payment change proposals'

The credit card industry has put forward a set of proposals it claims are designed to protect vulnerable customers.

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25 January 2010

Credit card association 'makes payment change proposals'”

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The report by the UK Cards Association agrees with the government that people paying off their credit cards should be able to pay off their most expensive debts first.

According to the association, the majority of borrowers should be able to benefit from this new system.

However, it argues that those who make only the minimum repayment each month for a year should not be able to pay the cheapest debts first, but rather the lender should decide which debts are paid.

This would affect around two million cards, 3.1% of the total number issued.

However, Nationwide and Saga have both argued card providers should always allow credit card holders to pay their most expensive debts first.

There are currently 30 million credit card holders in the UK, holding a total of 66 million cards.

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