BIS Credit & Store Card Consultation - CLOSED - responses added

[Amethyst]

Re: bba letter to BIS re CCD - CCA / irresponsible lending

bump

[natweststaffmember]

Re: BIS credit/store card consultation

yer what? lol.....will have more time soon to look at this I think(depends of other stuff, pmsl).

[Amethyst]

Re: BIS credit/store card consultation

don't worry babe was just bumping so I can find it

[Amethyst]

Re: BIS Credit & Store Card Consultation - OPEN

RESPONSES

MSE - Government credit card crackdown: MSE submission - MoneySavingExpert News

Fscp - http://www.fs-cp.org.uk/publications...s_response.pdf

[Amethyst]

Re: BIS Credit & Store Card Consultation - CLOSED - responses added

The five new rights for credit card users agreed by the Department for Business, Innovation and Skills with the UK Cards Association and the Finance and Leasing Association (representing store card companies) are:

· Right to repay: consumers’ repayments will always be put against the highest rate debt first. For consumers opening new accounts the minimum payment will always cover at least interest, fees and charges, plus one per cent of the principal to encourage better repayment practice.

· Right to control: consumers will have the right to choose not to receive credit limit increases in future and the right to reduce their limit at any time; and consumers will have better automated payment options. Consumers will be able to do both of these online.

· Right to reject: consumers will be given more time to reject increases in their interest rate or their credit limit.

· Right to information: consumers at risk of financial difficulties will be given guidance on the consequences of paying back too little; and all consumers will be given clear information on increases in their interest rate or their credit limit including the right to reject.

· Right to compare: consumers will have an annual statement that allows for easy cost comparison with other providers.


Other measures designed to encourage responsible borrowing and lending and help people avoid taking on unmanageable debts include:

· The new Consumer Credit Directive regulations and OfT Irresponsible Lending Guidance to be introduced before the summer, requiring lenders to check customers can afford a loan, give clear information on new loans and give a 14-day cooling off period during which new loans can be cancelled. Lenders who fail to comply run the risk of having their licence to lend withdrawn.

· All consumers to have access to their credit records online for £2 or free of charge from June 2010, under a new agreement with the three main credit reference agencies secured by the Department for Business, Innovation and Skills. Access will be free for victims of ID fraud and people receiving debt advice.

· Stronger protections under the Lending Code agreed between the British Bankers Association and the Ministry of Justice, so that lenders consider reducing or freezing interest and charges, and accepting token payments, from people who suffer a sudden income shock.

· For those suffering the most serious financial hardship, proposals by the Department for Work and Pensions to reform the Social Fund, so that it will be more efficient, easier to understand, and families will be given independent money advice to help them manage their debts.


In addition, consumers who are at risk of financial difficulties will be protected through a ban on increases in their credit limit as well as the ban on increases in their interest rate, and card companies will work with debt advice agencies to agree new ways they will provide targeted support to consumers at risk.