New changes to store cards in time for Christmas

Christmas shoppers will benefit from changes to store cards, agreed by the Government and card providers, which must take effect by the end of this year.

The improved procedures for store card users were agreed in March 2010 following discussions with the Department for Business, Innovation and Skills and must be in place by the end of the year. 

Fiona Hoyle, FLA Head of Consumer Finance, said: "Many people will use store cards for their Christmas shopping this year, but they may not be aware of the changes that will help them to manage their finances after their Christmas spend.

"Store card companies have already begun to make the changes ahead of December's deadline, so consumers will benefit from: a new order of payments, so that the most expensive debt is paid off your card first; an increase to the minimum repayment levels, which will avoid too much debt accruing; more control over your credit limit; a right to choose not to accept an interest rate increase and to pay off your balance at the prevailing rate. From February they will also have a right to change their mind about a store card within fourteen days."