New credit card rules bring about changes that are... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » New credit card rules bring about changes that are consumer friendly

New credit card rules bring about changes that are consumer friendly

New credit card rules bring about changes that are consumer friendly
The content is accurate at the time of publication and is subject to change.

Now customers will be able to get a better deal, and will gain better control over their card accounts as the new rules under The Lending Code come into effect.


The significant changes under the new rules are:



  • The debt that is the most expensive will be paid off first. Making a switch over to the positive order of payment is good news, especially if the credit card has been used for more than one kind of borrowing such as purchases and balance transfers. As per the UK Cards Association at least 25% of all the card account holders are most likely to benefit due to this change.

  • There will be new changes towards the end of March as the minimum payments on the new credit card accounts will cover the fees, charges, interest, and 1% of the outstanding balance.

  • Credit card cheques that are unsolicited are banned and customers asking for them will have to face new restrictions.

  • There will be a warning before the credit limit is increased and there will be a 30-day period to turn down the offer.

  • Customers would be informed by their issuers about the rise in interest rates, and they will have an opportunity to reject the rise and switch over. Customers would be informed about the rise at least twice, and they will have 60 days to reject the same while paying off their current debts at the prevailing rates.

  • Paying off credit card debts will become more flexible as one can make a choice in making payments, where they can opt to pay the minimum or the full balance and the amount can be set up by the customer, if it is a regular payment.

  • The card company will contact you and give a warning if only the minimum payment is made regularly as this could increase the interest rates and thereby cause problems in the future.

Joanna Elson, chief executive, Money Advice Trust states that these are significant changes and is pleased that these changes have been incorporated. She feels that during such times it is important to help consumers, who are struggling with paying off their debts. She also believes that these changes will not only help consumers in repaying their debts, but will also aid in preventing future debts. This positive outcome has also been the result of the collaborative efforts from the UK Cards Association, she said.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

The New Synchrony HOME Credit Card
The New Synchrony HOME Credit Card

Posted: February 12, 2019

Shopping for your home can get expensive but earning rewards can make it more affordable. In keeping with this theme, Synchrony is rolling out their newest credit card – the Synchrony HOME Credit Card. With this card, people earn 2% cash… Continue reading

The New World Elite Mastercard for Business from Brex
The New World Elite Mastercard for Business from Brex

Posted: February 8, 2019

Brex is upgrading their credit card so that business cardholders now get access to Mastercard’s World Elite program. Due to this partnership, the new Brex World Elite Mastercard for a Business will include a wide range of benefits,… Continue reading

You Can Once Again Sign up For the Citi Prestige Credit Card and get a 50,000 Bonus Points
You Can Once Again Sign up For the Citi Prestige Credit Card and get a 50,000 Bonus Points

Posted: February 5, 2019

If you have been waiting for the Citi Prestige® Card to start taking applications again, you are in luck the card is now open for new cardholders. The card also comes along with 50,000 bonus points when cardholders spend $4,000… Continue reading

Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn unlimited 1.5% cash back on every purchase, every day
For Average, Fair, Limited Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!