Jake Berry MP: Important Changes to Credit Cards
Jake Berry, Member of Parliament for Rossendale and Darwen has welcomed changes to the way credit cards work and hopes residents of Rossendale will benefit from a range of improvements but they must act now to ensure they benefit from these changes.
The main changes cardholders will see are:
- The most expensive debt on their credit card will always be paid off first
- A new way to calculate the level of a minimum payment will be applied to all new credit card accounts opened from the end of March
- No more ‘unsolicited’ credit card cheques
- More control over their credit limit
- Notification at least 30 days in advance of any interest rate increase
- Ability to set up regular automated payments for any amount
- Guidance provided for those regularly paying the minimum payment, or close to the minimum
- Provision of an ‘annual credit card statement’
Jake said, “For too long credit card companies have been able to charge huge interest payments on account holders. This reform is long overdue but we must keep these changes under review. People, especially those on lower incomes, use credit cards as a way of managing their finances. Initial deals often seem too good to be true and often are. Residents should ensure any card company they borrow from is a signatory to the new UK Credit Cards Association Code.”
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