Nationwide: Credit cards billing structure should change

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Nationwide: Credit cards billing structure should change

Thu 19th Mar 2009

Nationwide has called for changes to be made to credit card billing structures, following the passing of a new law in the US.

Currently, almost all credit card providers in the UK charge their customers for the least expensive debt item on their card first, leaving the most expensive to accrue more interest for as long as possible.

However recent changes in the US have led to a law being passed which means that providers will be obliged to pay off the most expensive item first when it comes into effect in around one year's time.

Jeremy Wood, Nationwide's consumer finance director, said: "We believe the UK should follow the U.S. and make card providers allocate payments in a positive way.

"Consumers can ill-afford to lose this much money, especially in the current financial climate."

Recently, Nationwide claimed that every one in the UK should be trying to save money in the current climate.

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