Will recent credit card regulation changes have an impact?
The last few weeks have seen a number of significant changes to the regulatory framework surrounding the credit card industry. This is an industry which has attracted more than its fair share of attention and criticism over the years due to a "heavy-handed" approach to customers in financial difficulty. With more and more of the UK population struggling to make ends meet the government has stepped in to offer protection for those in trouble and offer them time to take professional advice.
Under the new regulations all cardholders will be given a 30 day breathing space in which they will be invited to take free advice from the citizens advice bureau regarding their financial situation. If no financial arrangements or financial deal can be sorted within the first 30 day period there is a further 30 day buffer during which no payment demands can be issued by the credit card companies. However, if after this second 30 day period there is still no progress then the options are very much bleaker.
The government has also confirmed that credit card companies will not be able to change their interest rates during the first 12 months of a customer's time with the company. This particular protection has been installed because a number of customers complained about significant increases in interest rates only weeks or months after taking up a promotional offer.
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