Tag: Plastic money

Very good, though a belated move.Credit card companies fleece customers by-
-Offering Credit card for free for a fixed period,usually for a year, with out a fee, but charge under some other head much higher fee.
-increase credit limit with out your asking and debit charges for the same.
-keep a minimum balance payable and keep quiet for some time and one fine day over due payments include higher minimum payable per month
-hide the fact establishments charge 2 and a half percent extra for credit card purchase.( India)
-provide add on card and charge later.
-call for balance transfer to some other banks saying no charge will be levied, but charge later
-the interest rate will work out to be more than 36 percent per annum at the minimum if you know how to calculate correctly.
Time some body reins them.
Story;
The Government is considering rules which would mean the most expensive debt is paid off first, as well as raising minimum monthly repayments from their current low level to avoid customers taking decades to clear borrowings.

Kevin Brennan, the Consumer Minister, said: ”Card companies have to get their act together and do more for consumers.

”My opinion is clear, the current relationship between card companies and consumers cannot go unchallenged. We need to put the customer back in the driving seat.”

Other moves being considered by ministers are a ban on increasing credit limits without prior consent – possibly by forcing consumers to opt-in – and restrictions on rate hikes on existing debts without proper explanation.

”It is not acceptable for card companies to impose complex and confusing terms and conditions that can leave people baffled, or to increase interest rates without a proper explanation,” Mr Brennan added.

”Consumers have a real responsibility to manage their finances properly, but they also have a right to clear information to enable them to do that. Consumers should not feel each month as if they’ve been exploited or disadvantaged.”

The Government said in July’s Consumer White Paper that it would tackle the way credit card repayment policies could lead to bigger than expected interest charges. It is already legislating to ban unsolicited credit card cheques in November. The current consultation will run until January 19.

Fiona Hoyle, head of consumer finance at the Finance and Leasing Association, said: ”Many of the measures proposed today by the Government have been under discussion with the industry for some time and reflect rapidly-changing market conditions.

”The industry’s commitment to helping consumers is shown by the many measures already taken in recent months.
http://www.telegraph.co.uk/finance/personalfinance/borrowing/creditcards/6443566/Credit-card-companies-told-to-get-their-act-together.html