Measures designed to help those with credit card debt have been described as “too little, too late” by one expert.
The UK Cards Association produced a report outlining ways in which the industry intends to support consumers, but chartered financial planer at Informed Choice Martin Bamford suggested they are disappointing.
Among the suggestions submitted to the government was a commitment to allocate money to the most expensive debt, but Mr Bamford highlighted the fact that this will only apply to payments above the minimum level.
Calling for legislation to ensure customers are treated fairly, he advised people with debt problems to take control in order to avoid any further difficulty.
“Whilst industry guidelines or legislation can protect borrowers, it is individual borrowers who really need to take responsibility for their debts and manage their finances carefully,” said the specialist.
A recent Nationwide survey revealed that over 60 per cent of credit card customers do not understand the system for allocating payments.
By Andy Mackay