Jul/090
New Rules for Credit Cards
New regulations are forcing credit card issuers to stop increasing credit limits and sending blank credit card cheques without first assessing the consumer’s financial situation.
Blank credit card cheques do not protect the product bought with them if they are faulty like credit cards do, and they also have more expensive charges than the cards themselves. Without first checking the financial state of a consumer, it can cause serious levels of unpaid debt, the consequence of which falls to the consumer who has used the cheque or credit limit as a way of buying time against other debts they have.
The Government is now putting a stop to credit cards exploiting vulnerable consumers by bringing in a new legislation that stops credit cards issuers increasing credit limits without being requested to do so, or first checking the financial state of the consumer. They are also looking to ban unsolicited cheques by credit card firms being sent out to consumers. Both of which will hopefully decrease financial problems.
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