Card Debt 'Breathing Space' Deal

[PGH7447]

Card Debt 'Breathing Space' Deal

 

companies have agreed to give more 'breathing space' to people struggling with their debts.

Card issuers backed a new set of fair principles with the Government, including an end to the practice of imposing overnight interest

hikes on customers

[RedVixen]

I was just about to post this

 

I found the bit about telling consumers they can complain about interest hikes which have already happened - hello - MBNA......................

 

who more than doubled mine.

 

I had planned once I had got my SAR stuff to recalculate everything based on my original interest rate and make an offer on that which I suspect will may be zero

[cerberusalert]

The Government will ask the OFT to monitor the industry's progress on implementing the new principles, which will come into effect on January 1.

 

No doubt the industry will read that as 'interest added after January 1 2009' so anything prior will still stand:(

[RedVixen]

The Government said borrowers who had already experienced a hike in their interest rate - which in some cases could be as high as 10% - should complain to their card provider.

They can also report the matter to the Financial Ombudsman Service, if they are not happy with their lenders' response.

Which makes me think the FOS may be more sympathetic to these cases where the itnerest rate has gone up - if they are suggesting 10% is high how many of us have had increases of 20% - I have for one

[losingwilltolive]

Further to this did the govt. also recently announce measures /free advice etc for those in debt-- it was announced at the same time as the announcement for help with reposessions- I cannot seem to find this anywhere

[loopyjuice]

Does this mean that if they want to put up interest rates you have the option of closing the account and paying off the debt at the existing rate until it's all paid off, if yes then that's good news.