Credit card holders 'benefit from new measures'

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Credit card holders 'benefit from new measures'

Mon 15th Mar 2010

Melanie Johnson, chair of the UK Cards Association, said she was pleased that the new regulations would be introduced and would not "overhaul" existing credit terms.

She added: "We believe that the outcome of the review is balanced and will give consumers the greater control and convenience that the industry and the government wish to provide."

The primary aim of these measures will be to target the "adverse order of payments", which allows companies to charge a higher interest by asking customers to pay off smaller amounts of debt first.

People will be given the right to repay according to their own preference and be able to tell providers not to increase their credit limits.

The changes will be implemented under the government's lending code and come into effect at the end of the year.

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