The government is putting a stop to dodgy practices by credit card providers that make it difficult for consumers to get out of debt. When card holders pay money off their balance, credit card companies insist that the repayment goes on the smallest debt first - leaving the big balance to garner more interest. However new rules announced on Monday by The Department of Business will now prevent this, pushing through an agreement with banks to ensure that the highest debt will be paid off first.
Not only that, but credit card issuers will also have to inform customers when they are increasing interest rates, giving them the option to cancel; although this doesn’t prevent companies from putting up credit limits without permission.
This latest ruling is set to save credit card customers nearly £300 million each year - good news after a year of doom and gloom for consumers.
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