MSE News: Financial regulator to probe credit card market

Gentoo365

Prediction 1
0% 'offers' will be banned as they 'hide the impact of building up debt'.

Prediction 2
Balance transfer fees banned, or have to reflect actual costs.

Prediction 3
Any customer allowed to 'switch' their card to a repayment loan on request. With appropriate reduction in rate.

Prediction 4
Regulation so onerous that many smaller providers exit the market such that only main banks have the scale required

Prediction 5
EU rules completely override all the work done by the UK regulator and start adding weird requirements like 're-apply every year', 'have to have an annual fee', 'interest charged from transaction date', 'documents have to show 5 forecasts of payments and rates based on the highest rate the bank has ever charged'

BillJones

It'd probably help an awful lot of people if credit simply became far harder to obtain. When I was younger it was a rare thing to have, and as a result far fewer people got into problems.

If people have to save up for holidays, carpets, new hats, a television etc. then it's not a disaster.

MABLE

There certainly is nothing wrong with credit cards provided they are used in a sensible way. Its very easy to blame the loan provider but it is up to the borrower to behave in a sensible manner.

I use mine for everyday purchases including paying my water and utility bills and at the end of the year get some cashback. Obviously to get the best from the card I clear the balance every month.

[Deleted User]

zerog wrote: »

I don't actually know anybody who uses credit cards to borrow money.

I don't use Credit (or indeed Debit) Cards, PERIOD.

COOLTRIKERCHICK

what I am annoyed about is


I have started making over payments on my Lloyds cc, I have a direct debit set up to take the min payment every month.. BUT when I Make additional payments on line, it takes that payment off the min payment amount..


I was getting letters from Lloyds saying about if you only pay min payments, and encourage you to make over payments, ( which I presume is a letter they send out to show they are acting responsibly)


So I thought I made over payments of £138 last month, but in fact I only made an over payment of approx. £60.


I phoned Lloyds and asked them can I have a DD which is a 'fixed' amount and will not alter if extra payments are made online.... but they said they do not do this..


surely this is hindering people in making additional payments...???




Don't know if this was the right place to highlight this to Martin, and maybe it is something he can look into etc...

MABLE

Bedsit_Bob wrote: »

I don't use Credit (or indeed Debit) Cards, PERIOD.

If you feel you cannot trust yourself with cards then you are certainly doing the right thing.

[Deleted User]

It's a case of giving myself time to mull over a purchase.

Currently, it works like this:-

I see something pricey that interests me.

I travel to the bank, to draw out the money.

Having withdrawn the money, I make my way back to the shop.

By the time I've reached the shop, I've had time to consider if I really should buy it.

With a card, it'd go like this:-

I see something pricey that interests me.

I take out my card and buy it.

I then think "Should I really have bought this"?

IMO, a card makes it too quick and easy to buy things.

I suspect this is why many (but not all, I hasten to add) people have huge debts.

grumbler

Bedsit_Bob wrote: »

I see something pricey that interests me.

I travel to the bank, to draw out the money.

Having withdrawn the money, I make my way back to the shop.

By the time I've reached the shop, I've had time to consider if I really should buy it.

What a waste of your time!
My will-power saves me a lot of time then.
Also it saves a lot of space in my pockets as I normally have only two cards on me and no coins.

Mr_K

Credit cards work very well if you get a cashback card and pay off in full each month. Anyone that actually borrows on a credit card is a mug, can't protect someone from their own stupidity.

MABLE

Bedsit_Bob wrote: »

It's a case of giving myself time to mull over a purchase.

Currently, it works like this:-

I see something pricey that interests me.

I travel to the bank, to draw out the money.

Having withdrawn the money, I make my way back to the shop.

By the time I've reached the shop, I've had time to consider if I really should buy it.

With a card, it'd go like this:-

I see something pricey that interests me.

I take out my card and buy it.

I then think "Should I really have bought this"?

IMO, a card makes it too quick and easy to buy things.

I suspect this is why many (but not all, I hasten to add) people have huge debts.

The main thing is it works for you and I certainly would not knock it.