Department for Business, Innovation and Skills
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Government Response to PWC Report on Credit Card Market
PricewaterhouseCoopers released a report today on the future of the credit card market.
Commenting on the report, a Department for Business spokesperson said:
"Two weeks ago the Government launched a consultation on new measures which we believe will give consumers who use credit cards a better deal. That consultation is receiving an extraordinarily positive response from the public.
"Consumers are clearly very concerned about the credit card market and we are determined to put the customer back in the driving seat.
“There is a need to proceed carefully but the PricewaterhouseCoopers report fails to reflect the many positive options credit card companies have to reform the current system.
“Consumers would not be impressed if credit card companies used this report to argue against change; they should not hide behind this report."
Notes to Editors
1. The Department for Business, Innovation and Skills published its credit and store card consultation on October 27. The credit and store card consultation runs until January 19 and people can read the proposals and register their views at: www.bis.gov.uk/creditconsultation
2. The Government said in the Consumer White Paper (published July 2 2009) that it would examine the way credit card repayment policies can lead to people paying more in interest charges than they expect.
3. The Government is already taking action and is legislating to ban unsolicited credit card cheques in November. Under the Office of Fair Trading’s Guidance on Irresponsible Lending Practices, coming into force in January, lenders should not to encourage borrowers to increase existing debt. Lenders failing to follow the OFT's guidance can be stripped of their credit licences. This could be used to enforce changes to minimum payments and credit limit increases. The Consumer Credit Directive comes into force in June, requiring credit card companies to properly explain their charges.
4. The consultation builds on the ‘fair principles’ agreed at the Credit Card Summit at the Department for Business in November 2008.
Department for Business, Innovation & Skills
The Department for Business, Innovation and Skills (BIS) is building a dynamic and competitive UK economy by: creating the conditions for business success; promoting innovation, enterprise and science; and giving everyone the skills and opportunities to succeed. To achieve this it will foster world-class universities and promote an open global economy. BIS - Investing in our future.
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Helen Cook
Phone: 020 7215 6963
Helen.Cook@bis.gsi.gov.uk
