Lyn Brown MP has welcomed a new deal between the government and credit card companies which will give people more control over their finances.  It is estimated the deal will save consumers almost £300 million a year.

The new deal will mean that consumers will be able to pay off the most expensive debt, like withdrawing cash on a credit card, more quickly.  There will also be better repayment plans, a ban on credit limit and rate rises for anyone at risk of financial problems and a right to 60 days to reject interest rate increases.

These new rules will be introduced this year by the credit card companies.

Lyn Brown MP said,

“This new deal is great news for anyone with a credit or store card.  It’s estimated that it will save the average credit card user around £224 a year – a welcome boost to finances as we come through the downturn.

The old rules were confusing and unfair.  The Government has taken action to give consumers back the balance of power.  This deal will help cut the cost of borrowing and put a stop to irresponsible lending by the credit card companies.

The new rules mean more protection for those who may be in financial difficulty and clearer, fairer rules for everyone.

I would urge anyone who is struggling with their finances to get in touch with their credit card company as soon as possible.  Or contact my office for assistance.”