By David Hanson MP / Latest News / 0 Comments

Government Prepared to take Action over Unfair Interest Rate Hikes – Hanson

Delyn MP David Hanson has welcomed moves by the Government to call on the credit card companies to stop the unfair interest hikes that are currently being brought by some lenders.

Whilst most credit card companies act responsibly, the Government are seeing recent evidence of pockets of bad practice where some lenders are hiking up people’s rates massively without adequate notice or any justifiable explanation, claiming that they now pose a higher risk.

The Government wants to stop these unfair practices. If action is not taken then they will be referred to the Office of Fair Trading – the consumer watchdog who have recently been given tough new enforcement powers to outlaw unfair lending practices.

David Hanson said:

“At a time when families are really struggling through this downturn I want to see action against credit card companies that employ unfair lending practices. There are examples of people’s interest rates being doubled overnight – without any justified explanation.

“This is clearly unacceptable. If it continues companies should know these practices will face investigation and action.

“If you have any evidence of credit card companies hiking up interest rates in a completely unfair and unjustified way I want people to get in touch with me and I will immediately pass on to the Financial Ombudsman Service. I will also pass on your evidence to the Government so that Ministers really know what is happening on the ground.”

Write to David Hanson MP, House of Commons, London SW1A OAA; email:hansond(at)parliament.uk or call 01352 763159.