Credit card measures 'a baby step in the right direction'

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Credit card measures 'a baby step in the right direction'

Tue 16th Mar 2010

Chris Tapp, director of Credit Action, commented that the proposals have not gone as far as many in the industry expected but said it was a "step in the right direction".

He added: "We would like to have seen more being done to encourage people to pay more by raising the level of minimum payments or at least by putting the indicative scales on statements."

The government thinks the new measures, which give customers more control over their debt, will help to save almost £300 million a year.

According to Moneyfacts, credit rates reached a 12-year record at 18.8 per cent in February this year and it was suggested that a person with £5,000 debt who paid only the minimum repayments would have to repay an extra £2,289 until it was fully paid back.

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