UK Government to Regulate Credit Card Market
British Government plans to introduce stricter regulation of the credit and store card market in an effort to promote fair treatment of consumers.
In the framework of this initiative, the Government might cap the interest rates on credit and store cards. Also, it might introduce a cooling off period for return of store cards, mandatory issuance of electronic statements by card providers and cancellation of unfair bank charges.
Edward Davey, Consumer Minister, and Mark Hoban, Financial Secretary to the UK Treasury, have asked financial experts for advice on how to make the market more secure for consumers. Commenting on the move, Mr. Davey said that he wants both, lenders and borrowers to become more responsible and protected.
The proposals of the Government will be published as soon as in 2011.
Let us remind that UK credit card interest rates have been constantly growing in the recent months despite the fact that the Bank of England's base rate remained at its lowest level of 0.5% for 1.5 years.
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