Comment on the Government's agreement with credit card companies to give more help to customers.

Published:

27/11/2008

Topic:

Press Release,Money,Credit Cards

Kevin Mountford, head of banking at moneysupermarket.com said: "The agreement between the Treasury and credit card companies looks like a classic summit communiqué - which says a lot and means nothing.

"For example there is no commitment on the "order of payments" issue which sees most card companies apply payments to customers' cheapest debts first.  And a one month window isn't enough time for struggling borrowers to reach agreements with all of their creditors, three months would have been better, along with a commitment not to apply for a Charging Order to take possession of borrowers' homes.

"What's more, a likely result of what the Treasury has achieved is that it will get harder for people who want to take out a new credit card to be accepted.  The Government needs to understand that it cant control both the supply of credit and the price."

-End-

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