Review of credit card practices is 'fantastic news'

The government's commitment to stamping out unfair credit card practices is "fantastic news" for consumers, according to one money expert.

Ministers today (Thursday) published a white paper laying out plans to review the credit card industry and help ensure consumers are protected.

Louise Bond, finance expert at uSwitch.com, said the government must ensure it "goes far enough fast enough" with the investigation in order to prevent some providers from cashing in on hard-up borrowers.

She claimed that many Brits have been forced to use credit card facilities in a bid to make ends meet during the current financial climate, leaving them at the mercy of excessive fees and charges.

Ms Bond explained that rates have increased by 0.74 per cent over the course of the past 12 months, costing consumers as much as £288 in interest every year.

"It is these types of rate hikes which must be controlled otherwise it could lead to a downward spiral for many more people struggling with a burden of debt," she warned.

Among the guidelines laid out in the white paper, the government is proposing a ban on providers sending out unsolicited credit card cheques, which often encourage people to take on more debt.

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