Cut your rates says Brown
With the interest rates been cut by 2% last week, Gorden Brown today ordered that credit and debit card companies cut their interest rates as rates had been increased, it was discovered that rates high increased even though the cost of borrowing had fallen. They plan to have talks with credit card companies to re design on how they lend and to get them to lower the cost of borrowing, to protect the people who wish to borrow money. When these talks take place companies that do not comply with the government will have to answer to the office of fair trading and will be forced into lowering rates of how much they charge the public.
With base rates been cut by 1.5% the governments wants to see this passed on through other brokers and companies. They want to stamp out small print where a credit card can hit you later for more money, and also to stamp out all these hidden charges that companies have in there contract. With talks of more help to people who run into financial problems with these cards and more help on what to do do for the future. They are asking for these lenders to make what they charge and all the hidden charges to be much more clearer, and that the customer understands what sort of financial lending they are about to receive. With new finds that companies are charging up to an extra 0.8% on lending even though the base rate has been dropped, this brought attention to the government and meetings and changes will be in place very soon. Gordon Brown said that he wanted to bring down the % as he has some concerns on how the credit card companies were behaving. In the house of commons today Gareth Thomas, Consumer Affairs minister, said that he wanted changes in this area. As interest rates have dropped he wanted to shave the reduction on to the general public, as spending is much lower and repayments are now much higher.
