Credit card companies ease pressure on borrowers

Leading credit card companies have agreed to give more help to customers who are heavily in debt, after talks with government ministers on Wednesday.

Lord Mandelson, the Business Secretary, met with credit card companies and anti-poverty charities to push for fairer payment terms for credit card customers struggling to pay back their debt. In particular, he urged credit card companies to make clear to customers when rates change, as some credit card companies have been increasing their rates with little warning to customers, even as base rates have fallen sharply.

“The government is deeply concerned that borrowers aren’t getting a fair deal,” said Consumer Affairs Minister Gareth Thomas, who also attended the meeting. “That’s why we’ve taken swift action to bring the industry in to look at how costs are being applied to people’s existing debts.”