Credit card industry changes to be proposed by government
A list of proposed changes to the way credit cards work is to be announced today by the Department for Business, Innovation and Skills.
Credit card industry changes to be proposed by government”
These are likely to include ways to help consumers increase minimum payments and a proposal that credit card providers stop increasing holders’ credit limit without seeking their consent.
A further recommendation could include allowing credit card holders to pay their most expensive debts first.
Credit card provider Nationwide welcomed news of the Credit and Store Card Review.
Nationwide's product and marketing director, Chris Rhodes, said: "We think all UK credit card providers should allocate payments in a positive way. The US has already recognised that the practice of paying the cheapest debt first is unfair to customers and is forcing lenders to be more consumer friendly."
He added that Nationwide has always allowed its credit card holders to pay their most expensive debts first and that without this measure, it is often the most vulnerable customers who suffer.
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