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