Credit card rules could see customers pay more

Published on 1 January 1970 by Raffick Marday

Credit card companies have already begun to try and claw back the costs of the new rights for consumers.

That’s the warning coming from experts as government legislation clamping down on industry malpractice is to come into force next month.

Some of the practices include halting unsolicited credit increases and using repayments on cheaper debts first. The move could cost credit card companies £500 million in revenue.

And already there have been complaints that some companies are hiking interest rates on their cards. Egg, Halifax, Capital One and Virgin Money have all increased rates for some customers this month.

And there are fears that popular 0 per cent balance transfers may disappear altogether.

Some companies have said that they have had to adjust their rates because of increased risks of lending and the increasing number of bad debts.

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