Government calls for credit card communications to be 'less confusing and complex'

by Noelle McElhatton, marketingdirectmag.co.uk 27-Oct-09, 10:34

LONDON - The Government is calling for credit card companies to make their terms and conditions 'less confusing' as part of a push to outlaw unfair credit card practices.

The move is bound to have a knock-on effect for credit card marketing and in particular for those direct marketing agencies with credit card accounts.

"It is not acceptable for card companies to impose complex and confusing terms and conditions that can leave people baffled, or to increase interest rates without proper explanation," said Consumer Minister Kevin Brennan.

A ban on the issuance of unsolicited credit card cheques will also come into force once legislation that is now going through Parliament is passed.

The Government's drive follows a move by President Obama, to enact legislation earlier this year aimed at protecting consumers from late fees and interest charges, and forcing credit card companies to be more transparent about lending practices.