Government to hold credit card summit

Secretary of State for Business Peter Mandelson and Consumer Affairs Minister Gareth Thomas will hold a Summit with the credit card industry to address mounting concerns that credit card borrowers aren't getting a fair deal in the downturn.

The Prime Minister announced plans to bring the credit card industry in after seeing evidence of a new practice of card lenders significantly hiking up people's rates, as well as broader concerns about the failure of many companies to pass on cuts in interest rates to borrowers struggling to repay their debts.

Consumer Affairs Minister Gareth Thomas said: "The Government is deeply concerned that borrowers aren't getting a fair deal. That's why we've taken swift action to bring the industry in to look at how costs are being applied to people's existing debts.

"We want to work constructively with industry to draw up a set of principles that will enable them to keep lending and will also ensure borrowers are treated fairly and in a way that best helps them pay off their debts"

The Government recently brought in legislation to tackle unfair practices and has strengthened the Office of Fair Trading's enforcement powers so that they can take swift and effective action to prevent borrowers being treated unfairly.