Michael Welcomes Credit Card Announcements.

Michael Connarty welcomes fairer treatment for credit card customers.

The UK Cards Association has announced important changes to the way credit cards work. Michael Connarty MP has welcomed these measures all of which are listed below.

The main changes as from 1^st January 2011 are –

Customers most expensive debt on their credit cards will always be paid off first – previously, most credit card companies allocated payments to the lowest interest parts of the balance first.

A new way to calculate the minimum payment will be applied to all new credit card accounts (from March) where the minimum will cover the interest, fees and charges plus 1 % of the outstanding balance, ensuring that the balance is always reducing.

There will be no sending of unsolicited credit card cheques.

Customers will be notified 30 days in advance of their credit card company increasing their credit limit, you will also be able to reduce the limit at any time.

Customers will now be able to set up regular automated payments for any amount rather than just for the minimum payment or the full balance.

Customers will now be notified at least 30 days in advance of any interest rate rise by means of separate communication, this will include an option of a period of 60 days to exercise the right to decline the increase and pay off their balance at the existing rate over a reasonable period.

Full details can be seen on www.theukcardassociation.org.uk

Michael has welcomed the changes and said “I am pleased that credit card companies have recognised some of the financial hardship many ordinary people are facing at this time – these are indeed positive measures from a part of the financial sector relied on by many of my constituents especially those at the lower end of the income bracket. I will press the credit card providers at every opportunity to further ease the pressure on customers who often have to rely on credit cards simply to make ends meet.”

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