Business organisation calls for cap on credit card rates
Business organisation calls for cap on credit card rates
Tuesday 6th January 2009
The Federation of Small Businesses (FSB) has urged the government to impose a limit on credit card interest rates to prevent more users falling into debt.
In its new year message, the FSB claimed that the move would offer a boost to struggling consumers and prevent card providers from hiking rates even further.
In December, card providers agreed to establish a set of "fair principles" for the industry after attending talks with business secretary Lord Mandelson.
John Wright, chairman of the FSB, said: "The chancellor and the governor of the Bank of England must look into capping interest rates charged on credit cards.
"A cap on interest rates will at a stroke not only reduce business costs but give consumers a real boost and cut the cost of borrowing."
David Kuo, head of personal finance at fool.co.uk, recently warned card users that they may face a shrinking credit limit as providers tighten their lending policies in 2009.
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