New scheme designed to help those with credit card debt

Credit card companies are launching an initiative aimed at identifying consumers who may need debt advice.

Apacs – the UK payments association – has revealed that providers will now share more information about the habits of borrowers.

Currently details such as balances and credit limits are exchanged, but under the proposal information concerning how often cash is withdrawn and whether a customer is benefiting from promotional deals will be included.

Welcoming the initiative, senior policy officer at Citizens Advice Peter Tutton stated that consumers with credit card debt will benefit from the additional information sharing.

“We believe that it is increasingly important that customers who are showing signs of experiencing debt stress are identified at an early stage, so that appropriate help can be provided,” he said.

Price comparison site Moneyfacts.co.uk recently found that the average credit card interest rate is 17.2 per cent, despite reductions in the Bank of England’s official base rate to three per cent.