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Customers may be denied cheap credit as card providers share data
Millions of credit card users could be denied cheap credit as from today new rules are implemented that allow card firms to share customer data.
Customers that legitimately move debt around different cards to keep down repayment costs could find themselves excluded from the best deals.
The five largest credit card providers - Capital One, HSBOS, Barclaycard, MBNA and GE Money - are set to share details of which customers are on promotional deals and whether a user has paid of their card debts in full.
This could impact on small firms as the recent economic climate has led to a tightening of cash flow, resulting in an increasing amount of small businesses resorting to using credit cards to pay bills and purchase supplies.
"The new rules are designed to crack down on irresponsible lending, but I would not be surprised if card firms use it to crack down on the millions of customers that in recent years have quite legitimately played the system to bring down their cost of credit," said Martin Lewis of MoneySavingExpert.com.
Post Date: December 1st, 2008
Customers that legitimately move debt around different cards to keep down repayment costs could find themselves excluded from the best deals.
The five largest credit card providers - Capital One, HSBOS, Barclaycard, MBNA and GE Money - are set to share details of which customers are on promotional deals and whether a user has paid of their card debts in full.
This could impact on small firms as the recent economic climate has led to a tightening of cash flow, resulting in an increasing amount of small businesses resorting to using credit cards to pay bills and purchase supplies.
"The new rules are designed to crack down on irresponsible lending, but I would not be surprised if card firms use it to crack down on the millions of customers that in recent years have quite legitimately played the system to bring down their cost of credit," said Martin Lewis of MoneySavingExpert.com.
Post Date: December 1st, 2008
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