Laws to stop credit firms enticing debt

THE Government is planning to introduce tougher laws for credit card firms to reduce the temptation to get into debt.

Legislation will be introduced to stop card firms raising a customer's credit limit when this has not been requested.

Ministers want to ban firms from sending out unsolicited credit card cheques to consumers.

But a spokesman for payments association Apacs said its members did not raise the credit limits of borrowers with financial problems. He added that only seven per cent of the cheques sent out were actually used.

Credit card cheques, which usually carry more expensive charges than credit cards, are sent to customers to use for purchases or payments. The amount is settled on their credit card bill.