Gordon Brown reveals new credit card rights

Monday, March 15th 2010

Credit card users may be pleased to hear the news that the prime minister has introduced new rights that could save thousands of pounds.

Gordon Brown revealed the legislation that hopes to make consumers more powerful and halt irresponsible lenders.

The government and credit and store card companies have negotiated the rights, which will be introduced this year.

"Step by step we are reinventing the financial services industry after the global financial crisis and moving the balance of power," the prime minister stated.

More expensive debt will be paid off more quickly, credit limit and rate increased for financially struggling people will be banned and there will be a right to 60 days to reject interest rate rises.

It is hoped some £300 million will be saved each year by consumers once the legislation comes into force.

Consumer minister Kevin Brennan called this a "big win" for borrowers and said it is a fairer system.

The chief executive of the Association of British Credit Unions Limited recently said that Britons should stop relying on credit cards.

Mark Lyonette advised consumers to try to save money instead.