Could America be a shining example to the UK?

January 31, 2007

In Washington, democratic lawyers have challenged credit card lenders over their late fees and other price rises. They say that these high price rises are predatory and they are trying to put a stop to it before it gets out of hand. So is this what the UK needs to be doing in order to solve our debt crisis? Well, it seems that it could well be worth thinking about!

The democratic lawyers are trying to put new legislation forward which forces creditors to tell consumers exactly how long it will take them to pay back their loan. As for credit cards they are saying that the fees are far too high considering the fact that most people rely on them for everyday things such as groceries and gasoline. It seems that people do not actually realise what they are getting into when they do take out these credit cards as the information provided is confusing.

However, credit cards are not necessarily looked upon as a problem. In fact they are recognised as part of the economy as they do provide convenience for a lot of consumers. It is the information available that seems to be the problem. So, with a better education regarding loans and credit card fees, maybe people will be able to make a better decision when it comes to taking out a credit card.

The laws really do need to be tougher regarding creditors and their tactics of getting money from their consumers. So will the UK follow in Washington’s footsteps? Only time will tell and schemes are already being set up in the UK in order to give consumers more knowledge. One thing is for certain – the government knows that debt is a serious problem and it is no doubt that 2007 will see a variety of improvements in the debt sector.