UK government announces crackdown on UK credit cards
The UK government has, as expected, issued a report which criticises the UK credit card industry and looks to put right a variety of wrongs which have impacted upon the financial well-being of many people. Prime minister Gordon Brown has "come out of hiding" to take centre stage in an attack on the financial sector, yet again, and more promises to improve the situation for consumers around the UK.
There are many credit card industry practices which are under review which include increasing credit limits without custom authorisation, paying off the least expensive portion of a customs debt first and (as we covered yesterday) a suggestion that the minimum monthly payment should rise from between 2% and 3% to 5%, a figure which was commonplace just a couple of years ago. In simple terms, the UK government is looking to rein in the ability of UK consumers to pile up debt and also reduce the power of the UK credit card industry.
As we have seen on numerous occasions, like all governments before them, the Labour government has become the "consumer's friend" in the run-up to a general election as the need to attract more voters and more support becomes ever more important. Despite the fact that the Labour Party has had two terms in office is it a coincidence that many long running issues are only now being addressed?
Share this..
Related stories
University funding increased
Total funding for universities and colleges in England will rise by 6.4 per cent in the 2007-8 school year, it has been announced.The Higher Education Funding Council for England (HEFCE) said the increase would make possible the prospect of higher education for 33,000 more full-time students.It added that the funding package provided a 5.4 per cent increase in research funding and a 2.75 per cent...
Read MoreAnnual credit card fees 'no surprise'
Experts say that the introduction of annual fees on credit cards by some of the big high street banks is unsurprising, but consumers may decide to switch over to debit cards to avoid the charges. Defaqto's David Black believes that since Barclays and Lloyds TSB have announced plans to charge annual fees for people who never use their credit card or only use it seldom, other banks will soon follow...
Read MoreIcelandic problem hits Guernsey
For so long the quiet back water where the rich and famous moved to it seems as though the financial heartache being felt around worldwide markets has hit Guernsey. It has been confirmed that those who held money with and Icelandic banks will only receive a maximum of 30% in compensation with some expected to receive nothing. So has the bubble burst on Guernsey? Is this now the end of the venue...
Read MoreOver 2.9 million financial service complaints registered last year
The financial services industry has taken a serious battering over the last two or three years with complaints reaching record levels having risen from 2.72 million in 2006 to 3.4 million in 2007, although there has been a slight decline to 2.9 million in 2008. However, with over 1.2 million of these claims currently "parked" until they have been resolved between the parties or else go to the cour...
Read MoreAirline industry to benefit from British Airways woes
Even though the British Airways cabin crew strike was only announced yesterday, we have seen a significant increase in the cost of Christmas airfares with each and every airline company desperate to bring in as much income as possible during these difficult times. In what is simply becoming a case of supply versus demand, we have seen the cost of a travel over the Christmas period, when the Britis...
Read More