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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?

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