If we limit credit card interest rates where does it all end?

The UK government is apparently on the verge of announcing a limit on credit card interest rates to try and protect those in the UK who have fallen into financial difficulties. The idea is that the FSA, or some other regulatory body, would be able to compare credit card interest rates against base rates and money market rates to see if they are "fair and just". However, if we limit credit card interest rates where does it all end?

The main reason why the UK financial sector is so strong and has developed so much over the last 50 years or so is the fact it is a "free market". So if the UK government and UK regulators moved to introduce a limit on interest rates on credit cards this could take away one of the competitive edges London has had over overseas counterparts. While there is obviously some sense in limiting excessive credit card interest rates the truth is that market forces should rule the roost and effectively dictate charges and rates of return.

Where do we go next? Do we have a minimum limit on savings account interest rates? Do we limit mortgage interest rates? The list goes on..............