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Strict laws for credit card firms
The Government is planning to introduce tougher laws for credit card firms to reduce the temptation to get into debt, it has been reported.
Legislation will be introduced to stop card firms from raising a customer's credit limit when this has not been requested, according to BBC News.
Ministers also want to ban firms from sending out unsolicited credit card cheques to consumers.
A spokesman for the UK payments association Apacs told BBC News its members did not raise the credit limits of borrowers with financial problems.
He added that only 7% of the cheques sent out were actually used.
Credit card cheques, which usually carry more expensive charges than credit cards, are sent to customers who are invited to use them for purchases or payments, and settle the amount on their next credit card bill.
The Government is planning to introduce tougher laws for credit card firms to reduce the temptation to get into debt, it has been reported.
Legislation will be introduced to stop card firms from raising a customer's credit limit when this has not been requested, according to BBC News.
Ministers also want to ban firms from sending out unsolicited credit card cheques to consumers.
A spokesman for the UK payments association Apacs told BBC News its members did not raise the credit limits of borrowers with financial problems.
He added that only 7% of the cheques sent out were actually used.
Credit card cheques, which usually carry more expensive charges than credit cards, are sent to customers who are invited to use them for purchases or payments, and settle the amount on their next credit card bill.
