Warnings Given for Increases in Credit Card Interest Rates
Credit card companies have now announced that they will no longer increase the interest rates on their cards overnight and without telling their customers.
The credit card companies have all agreed to a new policy that will mean that they have to give their customers a fair amount of time warning before they increase any rates attached to their credit cards. This move has come after the government warned the credit card companies that the office of fair trade would become involved if they did not start treating their customers fairly.
The credit card companies are now being swayed to pass on the interest rates cuts to their customers. The new agreement that the companies have signed will mean that there will be no increase in interest rates within 12 months of a credit or store card being taken out. After the 12 months period is up the companies will not be allowed to increase them more often than once every six months.
If an interest rate was to increase then customers will be warned at least 30 days in advance and will be given the option to close their account and pay off their debts at the current interest rate if they wish to do so.
These new agreements that have been signed by the credit card companies will mean that customers who are struggling will be able to manage their finances and debts more easily and will give them a little more breathing room if they are finding that they are unable to cope.
As of January 2009 the office of fair trade will be monitoring the credit card companies in order to make sure that they are treating their customers fairly.
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