Possible Credit Card Cap

D_M_E

http://www.talktalk.co.uk/news/money/articles/?id=1cf736ce-7379-4b0f-9ffb-eb1db8b3c1ca

A Labour government would cap credit card interest so that no-one pays back more than twice the amount of their original borrowing, shadow chancellor John McDonnell has announced.

In his keynote speech to Labour's annual conference in Brighton, Mr McDonnell will accuse the Government of creating a "debt crisis" which is becoming a threat to the economy, with 3 million people trapped in persistent debt with credit cards in the red by a total of £14 billion.

He will call on ministers to apply the same cap on credit card debts as on pay-day loans, limiting interest and charges to 100% of the amount borrowed. He will promise that if they fail to act, Labour will change the law when it wins power.

The Financial Conduct Authority estimates that more than 3 million credit card users - a tenth of the total - are in persistent debt, handing over more in interest and charges than in paying down their loans over the past 18 months.