Government to ban excessive interest rates on credit and store cards.
Article by Paymex 26th May 2010 00:00
The Coalition government has announced that it will ban excessive interest rates on credit and store cards. Added to this Ministers plan to introduce seven-day "cooling-off period" for store cards as well as introduce new measures to limit unfair bank charges.
Stephen Sklaroff, Finance and Leasing Association Director General, said:
“The retail credit industry has seen an avalanche of new consumer protection regulation in recent months, much of which has yet to bed down. Further moves – including last week’s suggestion of possible interest rate caps on cards and a new cooling-off period – would gold-plate recent EU regulations and risk a further contraction in the retail credit market at an already difficult time for customers. We will be seeking clarification of the Government’s plans soon as possible.”
Baines and Ernst Ltd