Jump to main content of pageaccessibility informationSitemap
29 Mar 2024
Compare Mortgages Compare Life Insurance Compare Remortgages

Go Direct Personal Finance News  2009

Moneyfacts welcomes credit card reforms

 Michelle Slade, spokesperson for Moneyfacts.co.uk comments:

“For far too long the card companies have been able to get away with practices that are not in the best interests of the consumer.

“Most consumers are unaware of the payment hierarchy system on credit cards, that in most instances sees the cheapest debt repaid first while the most expensive debt is paid off last.

“This practice earns the card companies a fortune in additional interest at the expense of the consumer and goes against the advice consumers would receive at a debt agency, which tells them to repay the most expensive debt first.

“Card companies including Bank of Scotland, Capital One Bank, Halifax and MBNA Europe Bank have all made recent moves to reduce the minimum payment customers are required to pay.

“This process that gives short term gains to customers looking to reduce their outgoing, but stores up longer term problems, as the total amount they will end up paying will be much greater.

“Increasing the minimum repayment will reduce both the total interest paid and the time it takes to clear the debt and will have a positive impact for most customers.

“For customers already struggling to meet repayments, an increase in how much they are required to pay each month could tip them over the edge. More measures would need to be put in place to stop these customers getting further into debt.

“Cleaning up the credit card industry’s act is to be applauded, but the moves are likely to leave a big hole in the coffers of card companies.

“If history repeats itself, we are likely to see customers paying for this lost revenue elsewhere.”

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.

Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600

We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £349

Remortgage | Mortgage Guide | Remortgage Guide | Life Insurance Quote | Mortgage Life Insurance | Decreasing Life Insurance | Home Insurance Quote | Conveyancing Quote | Mortgage Comparison | Free Mortgage Advice | Mortgage Rates | Mortgage Payment Calculator | Mortgage Protection | Best Mortgage | Mortgage Lenders | Income Protection | Remortgage Lenders | Gas and Electric | Remortgage Calculator