MSE News: No. 10 to reveal credit card crackdown on Monday

CannyJock

A_fiend_for_life wrote: »

How does this help people who are so close to their limit and forced to spend and accept at the new rate? Many people are in this situation. Changes of 2 or 3 % are understandable at times but where 10 and 15 % is applied the old spend should be kept at the old rate.

For people who had previously taken up a balance transfer offer at say 6.9% LOB and then find themselves "forced" to spend on the card, it means that their payments will be allocated against the new higher APR spending.

That's how it'll help.

Geez, reading some of the replies, I wonder what the hell some people need to see as "good news".

CannyJock

worldtraveller wrote: »

IMHO just more nanny state political intervention to aid, largely, the increasing number of incompetent, plain foolish, or just plain greed induced sheeple that are totally incapable of taking control of their own finances without more Government legislation. The losers, as usual, will largely be those that can and do!

How will we lose out?

Did someone invite the Daily Mail Forum regulars over for a Friday night out on the MSE boards?

One minute we're seeing posts about outrageous bonusses and charges the card companies are making despite BOE base rates (which, for the record, are completely unconnected and always have been). The next we're seeing a post like this supporting the status quo?

Of course the government will try and get some political mileage out of the announcement on Monday (there's an election coming up btw), but regardless of the politics, this is surely a good thing?

ffacoffipawb

MSE_Guy wrote: »

This is the discussion thread for the following MSE News Story:

"Gordon Brown will announce next week that consumer finance will be at the centre of Labour's election manifesto – including a crackdown on irresponsible credit card lending ..."

Read the full story:

No. 10 to reveal credit card crackdown on Monday

state

ILW

CannyJock wrote: »

How will we lose out?

Did someone invite the Daily Mail Forum regulars over for a Friday night out on the MSE boards?

One minute we're seeing posts about outrageous bonusses and charges the card companies are making despite BOE base rates (which, for the record, are completely unconnected and always have been). The next we're seeing a post like this supporting the status quo?

Of course the government will try and get some political mileage out of the announcement on Monday (there's an election coming up btw), but regardless of the politics, this is surely a good thing?

I believe that many will lose out as the card companies will at some point decide that it is not worth offering 0% balance transfers any more.

A_fiend_for_life

ILW wrote: »

Anyone who is forced to keep on spending and adding to their CC debt is just getting into more trouble and needs to address other things in their life.

I agree they would need to address other areas. This is easier said than done for some people once they get a rate jacking letter. The need for tranpsort to work or food etc would take precedence so they would be forced to spend in the short term and accept the new rate.

worldtraveller

CannyJock wrote: »

How will we lose out?

I'm pleased to see that you are probably not one of the sheeple! We will lose out because any change in legislation, possibly easing the pain for those that are affected, will, no doubt, IMHO, result in higher bank charges elsewhere in the sector to pay for the new legislation and others incompetence. Do you honestly believe that the banks will just roll over and absorb the extra costs?

CannyJock wrote: »

Did someone invite the Daily Mail Forum regulars over for a Friday night out on the MSE boards?

An unnecessary personal attack, but maybe that simply says something about you? I don't read the Daily Mail and I'm no big fan. Maybe I just happen to come from a generation that didn't have credit cards and knew, full well, and was taught, that if you couldn't afford it, you couldn't have it! IMHO many people in todays society, quite simply, need to get a grip on their unsustainable lifestyle spending and appreciate the same.

CannyJock wrote: »

Of course the government will try and get some political mileage out of the announcement on Monday (there's an election coming up btw)?

Really? Exactly my point!

CannyJock wrote: »

..but regardless of the politics, this is surely a good thing?

No! I don't believe so.

karatedragon

They should go the whole hog and ban credit cards all together. Evil things.

CannyJock

ILW wrote: »

I believe that many will lose out as the card companies will at some point decide that it is not worth offering 0% balance transfers any more.

Nah, as a full-time stoozer, have been hearing about the end of 0% promotions for years.

0% promotions are nothing to do with profits and allocation of payments. They're 100% a marketing ploy to lure in new business. When people can't understand why companies would offer these deals, they need to consider the amount of money they would otherwise spend to attract new custom. And for every stoozer and rate tart who flips their balance elsewhere, leaving them only a 2.98% or 4% fee there are hundreds of others who don't freqeuent these forums who go on to pay them 24%+ rates.

CannyJock

Not really wanting to get into he-said, she-said debate but ....

worldtraveller wrote: »

I'm pleased to see that you are probably not one of the sheeple!

You don't spend much time on the credit card forum do you?

worldtraveller wrote: »

We will lose out because any change in legislation, possibly easing the pain for those that are affected, will, no doubt, IMHO, result in higher bank charges elsewhere in the sector to pay for the new legislation and others incompetence. Do you honestly believe that the banks will just roll over and absorb the extra costs?

Of course they will. And there's plenty of slack for them to do this. The slack for them to do this with will increase as we come out of recession. Recent "bad" annual results have been largely the result of dumping toxic debt. There's an old adage in management accounts "If you're going to have a bad year, have a really bad year" .... makes your next year's recovery so much the greater

worldtraveller wrote: »

An unnecessary personal attack, but maybe that simply says something about you?

Wasn't a personal attack aimed at you. I'll fully apologise if you took it that way. Just reading a lot of negativity in general, not your post specifically. Even though yours isn't particularly positive

I'd take your comment one step further, and say that many need to take the adversarial consumer approach to a higher level - bust your tail to get rid of your debts then get yourself in a place where you can start looking at how you can actually generate income from the financial powers-that-be.

worldtraveller wrote: »

No! I don't believe so.

We'll agree to disagree although you're not citing specific negative consequences, just a generic "we'll all pay" without anything to back it up.

MiserlyMartin

Gordon Brown will announce on Monday that consumer finance will be at the centre of Labour's election manifesto – including a crackdown on irresponsible credit card lending.

Talk about closing the door after the horse has bolted¬! Brown failed to ensure as chancellor, that the FSA was fit for purpose and doing its job and it failed to regulate personal borrowing and dodgy mortgages. This has what has made Britain in such a bad position to weather the downturn with a falling pound and loss of investor confidence in UK plc. The incompetant debt loving government does nothing to help the situation.

Anyway how does MSE know this, this site seems to be making a lot of government annoucements these days?! Is MSE now Labours mouthpiece?