debt repayment periods set by fsa

samin

can anyone help me? a friend told me today that the fsa has passed a new law to say that debt companys have to be more leniant with the time that you are allowed to repay what you owe, how ever i have looked on the fsa site and can not find this informaiton. Does any one know anything about it?

Poosmate

Hi Samin,

I don't know anything about that but exactly the opposite is happening to me! I've had a change to my T&C on my MBNA credit card which takes effect in June. They have upped their minimum payment from 1.66% to 5%!!! I've managed perfectly so far chipping away at the debt paying extra off each month (current minimum payment is £47 but I've been paying £60). From June my minimum payment will be £141! 2.3 times what it is now. If I could afford to pay an extra £80 off my bill I would.

So, for me, MBNA want's me to pay the loan off quicker and just so they don't lose too much interest, they just put that up too!

Sorry to be the bearer of bad news!

Poo

dunstonh

an anyone help me? a friend told me today that the fsa has passed a new law to say that debt companys have to be more leniant with the time that you are allowed to repay what you owe

The FSA doesnt have any power to set laws. In fact it generally doesnt work on the basis of rules nowadays but more guidelines and principles.

It has asked finance companies to ensure that they treat customers fairly when dealing with debts but thats the only bit of the FSA I have seen on this subject.

Alistair Darling called on lenders to be a bit more lenient a few weeks back but the treasury also confirmed that no new legislation was planned.