Credit card industry concerned over consumer debt

By UK.CreditCards.com

The credit card industry is concerned about consumer debt.The UK's credit card companies are not ignoring the issue of consumer debt, according to a financial advice firm.

On 17 March, the prime minister confirmed speculation that the industry would be banned from raising credit limits without permission and sending out unsolicited credit card cheques. Gordon Brown said the changes are aimed at helping consumers avoid falling into debt.

However, according to Neil Munroe, external affairs director at Equifax, credit card providers are already looking "more sympathetically" at debt as a result of the recession.

"There are a number of initiatives that the card companies have undertaken in the past year or so that they have volunteered, which shows that they do take this matter of over-indebtedness and people getting into trouble with credit cards quite seriously," he said.

In January, Mr Munroe suggested that the recession will change the relationship borrowers have with credit. He predicted that consumers will pay off outstanding balances, rather than accruing more each month.

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Published: 20 March 2009