Credit card rights are 'welcomed' by industry

Tuesday, March 16th 2010

The government's new rights for credit card users have been welcomed by a number of organisations, which hope the move will lead to consumers being treated more fairly.

Chief operating officer at Saga Ali Crossley said that the previous situation was "outrageous" and that millions will be helped by the new rights.

And Teresa Perchard, Citizens Advice director of policy, agreed that there will be a fairer system once the legislation comes into force.

Minimum repayments meant that in the past many consumers could not even pay back interest on their borrowed money.

"It has not been fair for the companies to decide whether to allocate payments to the cheapest or most expensive borrowing on the card," Ms Perchard explained.

Among the new rules include the right to reject increases in interest rates or credit limit.

There is also a right to information that was introduced so customers at financial risk can be given guidance on what could happen if they fail to meet payments.