Credit market changes could boost borrower confidence

Moves towards greater credit market transparency could help consumers to better understand their credit card debts, it has been claimed.

The government's recent proposals to tackle unfair practices by credit card providers will help consumers to manage their credit card debt and avoid the pitfalls of potential misuse, according to the Consumer Credit Counselling Service (CCCS).

New measures from the government would ban the minority of lenders who hike interest rates on existing debts, and restore confidence in the majority of responsible credit card providers.

A spokesperson (male) for the Consumer Credit Counselling Service (CCCS) said: "CCCS welcomes the moves towards greater transparency the credit card market, and the fact that these developments should make it easier for clients to better understand and manage their credit card debts."

In response to the government's proposals the UK Payments Administration said that it is important that the case for change is supported by robust evidence.

The credit card industry remains entirely committed to the process of review and making changes if and when they can be shown to be in the best interests of credit cardholders.