FLA: Proposed ban on credit card cheques and limit increases

Responding to reports from the BBC and Sky News that the Government intends to ban automatic credit card limit increases and the issue of credit card cheques, Stephen Sklaroff, Director General at the Finance & Leasing Association said: "We need to hear from Government directly about its concerns before we can discuss any possible solutions. It is important that responsible lenders can continue to provide credit to responsible borrowers.

Economic recovery relies on an affordable supply of credit to promote consumer confidence and boost spending. There are some good deals available for those who can sensibly manage their finances and consumers should be allowed to make informed choices for themselves.

In recent months credit card lenders have demonstrated their willingness to address legitimate concerns, including via the introduction of a ‘breathing space' for people to repay debts and new fair principles on credit card risk-rating. We are surprised that the Government appears to be pre-judging discussions which have yet to take place."