New proposals announced by protect credit at store card users

Users of credit and store cards are to be subject to greater protection if new plans announced by the government go ahead.

Consumer minister Kevin Brennan revealed the proposals, which are part of a series of reforms designed to make financial services work better for consumers.

Under the terms of the plans, the rules that delineate the order in which debts built up on a credit card are paid off will be changed so that customers will pay off the most expensive debt first.

Also, the monthly repayment levels that consumers have to make will be raised so that they remain indebted for less time.

Mr Brennan said: "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."

Responding to the announcement, Citizens Advice director of public policy Teresa Perchard said the plans could result in a "significant long-term culture change" where increases in the credit limits offered to people are consumer driven.
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27/10/2009 14:21

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