Jump to content


Credit card bill proposes interest cap on borrowing

style="text-align:center;"> Please note that this topic has not had any new posts for the last 2502 days.

If you are trying to post a different story then you should start your own new thread. Posting on this thread is likely to mean that you won't get the help and advice that you need.

If you are trying to post information which is relevant to the story in this thread then please flag it up to the site team and they will allow you to post.

Thank you

Recommended Posts

A Labour MP has proposed a bill that would limit the total amount of interest paid on credit card borrowing to prevent debts from “spiralling” out of control. At the first reading of the Credit Card Debt Limit Bill 2012-13 on 27 November, Yvonne Fovargue explained that under the bill, credit card companies would be required to discharge a debt when three times the equivalent of the principal sum owed has been paid in interest.


She told parliament that while payday lenders have been the focus of media attention recently, credit card companies are responsible for causing detriment to a larger number of people. Fovargue said: “The number of people seeking help with credit card debt has risen sharply in the past five years. “Whereas people previously used credit cards for luxury or exceptional purchases, many are now using them simply to make ends meet, as well as committing to further credit card borrowing when one card is maxed out, in order to plug the gap in their household finances.”


She added that the aim was not to let people off lightly or allow them to default on their debts, and stated that credit card companies would “get their profits”. “It is about giving people a guarantee that their debt would be paid off at some definite future date and that it would not spiral upwards.” Fovargue gave an example of a Lloyds credit card with £1,000 on it, which will take 17 years and nine months to pay down the amount using minimum repayment levels. The bill was introduced to parliament under the ‘ten minute rule’, which allows an MP to make their case for a new bill in a speech lasting up to 10 minutes. It will have its second reading on 25 January 2013.


Link: http://www.credittoday.co.uk/article/14646/online-news/credit-card-bill-proposes-interest-cap-on-borrowing

Some useful links.


Making Posts

Letter Template Library

Bank Contact Details

AQ Guide to Completion

Court Fees

Data Protection non Compliance

Witness Statements for Court Bundle

Banking Code Website

Limitations Act

Fast Track Costs

A-Z Index

Mis-Claim Tutorial

Step By Step Instructions


Remember: The Ark was built by amateurs-The Titanic by professionals.


Please click my scales if you find my advice helpful !


If your claim is successful, please donate 5% so that it can continue to help others.


Your decisions and actions are your own, and should you be in any doubt, please seek qualified professional legal Help.



Please be aware of acting on advice given by PM .Anyone can make mistakes and if advice is given on the main forum people can see it to correct it ,if given privately then no one can see it to correct it. Please also be aware of giving your personal details to strangers





Share this post

Link to post
Share on other sites

This is long overdue,I would like to think that their will eventually be a Cap on Credit Card Interest,there is no justification for interest rates of 20% to 40% made by these companies,when they can borrow money at 5% or less,they are no better than the Payday Loan Sharks



Share this post

Link to post
Share on other sites

A very long time in coming. The charges and interest rates are still disgraceful.


If you liked what I said, and if it helped in any way, please tip my scales..... thank you:)

Share this post

Link to post
Share on other sites

  • Recently Browsing   0 Caggers

    No registered users viewing this page.

  • Have we helped you ...?

  • Create New...