27 November 2008
uSwitch.com has welcomed the Whitehall summit between credit card providers and business secretary Lord Mandelson, suggesting that such a meeting is long overdue.
The independent price comparison and switching service pointed out that two of the major credit card providers have put up their rates in the last month alone.
Any attempts to clamp down on the "extortionate" rates being charged by lenders are therefore positive, it claimed.
Louise Bond, Personal Finance Expert at uSwitch.com, said: "Finally the government is sitting up and taking notice of money making initiatives inflicted on consumers by credit card providers."
However, she warned that if card companies are forced to cap their interest rates, there is a danger that they will simply increase fees and charges elsewhere.
uSwitch.com is therefore calling for a crackdown on all "revenue-boosting" practices.
The meeting was held in response to Gordon Brown's calls for the credit card industry to adopt a more responsible approach to lending.