FSB suggests cap for credit card interest rates
A cap on the rate of interest on credit cards should be seriously considered in the coming year, it was suggested today.
FSB suggests cap for credit card interest rates
In its new year message, the Federation of Small Businesses (FSB) said the chancellor of the exchequer and the governor of the Bank of England must think about this option carefully in order to reduce effects of the economic slowdown.
FSB national chairman John Wright cited figures showing that 23 per cent of entrepreneurs use their company credit card for financing business, while 26 per cent use their personal credit card.
He explained that with the recent reduction in the national base rate, an upper limit on interest rates for credit cards should be on the agenda for next year as late payments are expected to be an issue "of grave concern" for small enterprises.
The national interest rate now stands at two per cent, having been lowered five times in 2008 - from 5.25 per cent in February to its current level this month.
Written by Max Jennings ©
