The Debt Clinic
Let's Make Your Finances Better
- Debt Management News (40)
- IVA News (9)
- Remortgage News (12)
- Loan News (19)
- Trust Deed News (3)
- Credit Check News (6)
- Latest News
- Most Popular Articles
Post New Article
Easy Product Advisor
Which solution is right for you?
Our test will give you an unbiased look at which service can help you
Tories Plan to Rein in High-interest Store Cards
The Conservative Party has pledged to tackle Britain's "debt addiction" via tough new proposals on high-interest store cards and a national programme of financial education.
Shadow Chancellor George Osborne (pictured) said that a Conservative government would hand the Office of Fair Trading new powers to rein in the providers of store cards, which often charge interest of up to 29 per cent.
He added that a seven-day “cooling off” period would be introduced before new cardholders can start to use them.
Britain’s shoppers currently owe a massive £2.2 billion on their store cards, while high interest rates on credit also add over £55 million a year to Britons’ debts.
The Tories would also raise a "social responsibility levy" on the financial services industry, said Mr Osborne, providing £50 million for a free national education programme aimed at clueing people up on the causes of debt.
"The role of the next Conservative government is to stop Britain's addiction to debt, and make sure when we next have a financial crisis or economic problem, we are much better prepared than we are at the moment," he declared.
The British Bankers Association gave the plans a cool reception, however.
A spokeswoman said, "Responsible lenders take steps to ensure they help people before difficulties reach crisis point.
“They already fund educational programmes, including debt counselling services. We would see any such compulsory scheme by a government as unnecessary."
Debt Management News posted on 10 July 2008
