Greater protection offered to credit card holders
Credit card holders could benefit from greater protection under the new Lending Code, which comes into effect this month, it has been suggested.
Greater protection offered to credit card holders”
According to the British Bankers' Association, the code will set out rules that must be followed by lenders providing credit cards, charge cards, loans and other types of loan payment.
It is to be monitored independently and enforced by the Lending Standards Board.
Requirements covered by the new regulation include the risk based pricing principles for credit cards.
Robert Skinner chief executive of the Lending Standards Board said: "The Lending Code sets out what it means to be a responsible lender covering both credit assessment and the support that will be available if things go wrong."
In related news, a company dedicated to helping people reconsider the way they think about money has suggested quotation searches should be available for anyone looking to apply for a credit card.
David Kuo, director of The MotleyFool.co.uk, said the current system used by Nationwide and Barclaycard should be rolled out across the board, so that people can have a good idea whether they will be accepted for a credit card or other loan before they decide to apply properly.
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