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  • Card Cheat Cameron

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    The document reports that the UK government has broken its pledge to tackle unfair credit card interest rates, with the average rate now at 18.3% APR, almost 2% higher than before the economic downturn. Credit card companies can lend to customers at record low rates but charge consumers much higher rates. A £350 debt at the minimum repayment schedule would take 21 years to repay and accrue £946 in interest. The government had promised new powers to regulate excessive interest rates but scrapped this pledge after lobbying from credit card companies.

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    The document reports that the UK government has broken its pledge to tackle unfair credit card interest rates, with the average rate now at 18.3% APR, almost 2% higher than before the economic downturn. Credit card companies can lend to customers at record low rates but charge consumers much higher rates. A £350 debt at the minimum repayment schedule would take 21 years to repay and accrue £946 in interest. The government had promised new powers to regulate excessive interest rates but scrapped this pledge after lobbying from credit card companies.

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    4 views2 pages

    Card Cheat Cameron

    Uploaded by

    Simply Debt Solutions
    The document reports that the UK government has broken its pledge to tackle unfair credit card interest rates, with the average rate now at 18.3% APR, almost 2% higher than before the economic downturn. Credit card companies can lend to customers at record low rates but charge consumers much higher rates. A £350 debt at the minimum repayment schedule would take 21 years to repay and accrue £946 in interest. The government had promised new powers to regulate excessive interest rates but scrapped this pledge after lobbying from credit card companies.

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    Card cheat Cameron


    PM ditches pledge to tackle credit rip-offs

    Credit war ... David Cameron vs campaigning Labour MP Stella Creasy DAVID Cameron's Government has secretly broken a vow to tackle credit card bullies strangling hard-up Brits, The Sun can reveal. Despite the nation's economic misery, big firms like Barclaycard, American Express and Capital One have ramped the interest rate they charge to a stinging average of 18.3% APR. That is almost two per cent HI GHER than before the downturn four years ago. It means a 350 debt would take 21 years to repay under a minimum schedule eventually costing 946 in interest. Tory and Lib Dem ministers initially promised to stop credit firms ripping off customers by imposing a cap on their rates. The Tories' 2010 election pledge was enshrined in the Coalition Agreement, stating: "We will give regulators new powers to define and ban excessive interest rates on credit and store cards." But the vow was quietly dropped last year after lobbying. The decision NOT to interfere was slipped out in November in a little-seen announcement. Campaigners fear rip-off rates force desperate families into the hands of loan sharks. The betrayal was uncovered by campaigning Labour MP Stella Creasy who also revealed the scale of the payday loans scandal.

    Ms Creasy, MP for Walthamstow, said: "It's little wonder loan sharks profit when credit card firms and banks drive people into their hands." Some firms charge way higher than the average, such as Capital One's rate for a Classic Card of 34.9 per cent. Yet firms can borrow at a record low rate. Consumer website Moneynet.co.uk's Andrew Hagger said: "There's no reason why their rates need to be so high." The Treasury said: "People need to be able to borrow if that's what they decide." t.newtondunn@the-sun.co.uk News Group Newspapers Limited Registered in England No. 679215 Registered office: 3 Thomas More Square, London E98 1XY. "The Sun", "Sun", "Sun Online" are registered trademarks or trade names of News Group Newspapers Limited. This service is provided on News Group Newspapers' Standard Terms and Conditions in accordance with our Privacy Policy . To inquire about a licence to reproduce material, visit our Syndication site. View our online Press Pack. For other inquiries, Contact Us. To see all content on The Sun, please use the Site Map. The Sun website is regulated by the Press Complaints Commission (PCC)

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