Joint Commitment to Credit Card Customers
New Consumer Credit Card Protection Agreed
The UK Cards Association and the Department for Business, Innovation and Skills (BIS) have reached a joint commitment as a result of the recent consultation regarding the ‘Review of the Regulation of Credit and Store Cards’.
Credit card companies have agreed their commitment to support customers’ interests by making sure that customers are able to control and manage their finances.
New Terms
Part of the agreement lead to the proposal that monthly repayments should at least cover interest, fees and charges, plus 1% of the amount spent.
Additionally, the previous decision to raise the minimum payment required each month has been abandoned.
The changes are set to come into force by the end of January 2011 and also include:
- Ensuring the highest cost debt on a credit card is paid off first.
- A ban on those in financial difficulties being offered an unsolicited rise in their credit limit.
- Any customer offered a credit limit increase will be offered a new 30-day notice period for ‘opting-out’.
- A 60-day period for people to reject a change to the interest rate on their existing debt. If they reject it they must close their account.
- Card companies will contact any customer who repeatedly only makes the minimum repayment to make clear that this is the most expensive way of paying off a debt.
- Card companies will work with debt advice agencies to agree how they might further identify consumers at risk of financial difficulties.
Payplan
If you are struggling with credit card debts or are finding it hard to meet your monthly repayments, contact Payplan today for free, confidential debt advice or call 0800 280 2816.
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Consumer Debt Averages £132 for Energy Bills
Energy Consumer Debt Hits £132
Energy consumers in debt to their suppliers now owe on average £132 – 5% more than last year, according to a study conducted by uSwitch.
Research shows that, of those in debt, 41% now owe more than they did this time last year while 17% said they owed less.
However, the poll for comparison website uSwitch found the number of UK households owing money has dropped from 6.5 million last year to 5.5 million – or 21%.
The figures follow recent gas price-cuts across the industry due to falling wholesale prices.
USwitch reported household energy bills rocketed by 42% (£381) in 2008 but fell by just 4% (£54) in 2009. Price cuts so far this year average out at 4% (estimated £45).
According to uSwitch, it is predicted that the average household bill will be £1,209 a year once the cuts come into effect – this is still £297 or 33% higher than at the beginning of 2008.
Payplan
If you owe money towards your monthly utility bills and are worried about debt, contact Payplan today for free, confidential advice.
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Leading Energy Suppliers Cut Monthly Bills
Cheaper Gas and Electricity Bills from Top Providers
This winter Britain has seen the coldest weather for over thirty years and as a result, energy consumption has soared as people struggle to keep warm.
With the recent fall in wholesale gas and electricity and fears raised over the current cost of energy, especially for the most vulnerable during the recent cold spell, leading suppliers have announced cuts to their monthly bills.
Four of the ‘big six’ energy suppliers have recently announced cuts:
- British Gas applied a 7% reduction on gas, making bills £4.58 a month cheaper.
- Scottish and Southern Energy revealed its prices will drop by 4% on March 29th, seeing a saving of £2.50 a month.
- Npower are set to cut gas prices by 7.1%, bringing a saving of £4.50 for dual fuel customers.
- E.On cut gas bills by 6%, an equivalent to £3.90 a month.
Government Benefits
For those struggling to afford their monthly heating bills this winter, help may be available from the government as they currently offer cold weather payments, the boiler scrappage scheme and warm front scheme.
Alternatively it may benefit you to contact your energy provider directly and discuss your bill.
Payplan
If you are worried about being able to cover your monthly utility bills, contact Payplan today for free, confidential advice and help with debt.
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