Tories outline credit card plans
By UK CreditCards.com
Consumers will receive warnings on credit card statements if the Conservatives come into power.
Under the Tories, credit card providers will be obliged to inform consumers of the level of debt they will reach if they only make minimum monthly payments.
The party undertook research which found that cardholders with £3,000 of debt on a 17.9% interest rate card would take 41 years to pay it off if they paid 2% each month. Additionally, they would end up paying their provider around £6,300. However, shadow chancellor George Osborne suggested that card issuers could also benefit from the measures.
"These policies will help consumers make more informed financial decisions. They are also beneficial for the financial services sector, which writes off billions of pounds of personal loans a year," he said.
The Conservatives lead Labour in most major opinion polls. The next general election must be held on or before 3 June 2010.
Published: 8 May 2009
- Industry responds to FCA's proposal on persistent credit card debt – Here's what industry experts have to say about the FCA's proposal to help credit card consumers in "consistent debt" ...
- Open banking FAQs answered – What is the new "open banking" initiative, how will it work and how will it benefit you? ...
- FAQs on FCA proposal for helping consumers with persistent credit card debt – The FCA is suggesting new rules for credit card companies to help those with "persistent debt". Here's what you need to know ...