Need New Credit Card Practices

Gordon Brown in a statement this week calls for new credit card practices regarding the credit card companies. He says they need to have a new lending style since they seem to refuse cutting interest rates. Mandelson is looking to take over this section of lending in order to create new guidelines for the lending companies to follow.

Credit card companies have been in talks with Gordon Brown. They were negotiating credit card interest rate cuts. However, Brown has asked for 69 percent cuts on some of the companies, and they refused. The average interest is 17.6 to 16.8 percent on credit cards despite the cuts the Bank of England has made to interest rates. In the last year the interest rate has gone from 5.75 percent to 3 percent. The store credit cards have raised their rate by 1 percent in the last six months. It is this type of issue in lending that is making it difficult on consumers who need help. Brown states that the credit card industry needs to change in order to clear up debt and get out of the credit crunch.

Some providers are not going to increase their rates, but nor will they decrease them.

This entry was posted on Saturday, November 15th, 2008 at 12:34 pm and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.