People trapped in a spiral of credit card debt would be protected by a cap on their interest payments under a Labour government, John McDonnell, the shadow chancellor, will say on Monday. Labour’s plan would bring the regulation of the credit card industry into line with rules on payday loan companies, which were subjected to these restrictions from 2015. McDonnell said he was “calling upon the government to act now apply the same rules on payday loans to credit card debt”. The FCA is so concerned about people in credit card debt that it proposed new regulations in April that would place more obligations on companies to stop persistent debt spiralling. “We set up the Financial Conduct Authority which is ensuring credit card firms do more to help their customers clear debt and, from January, rip-off credit card charges will be outlawed,” she said.

Source: The Guardian September 24, 2017 21:11 UTC