Credit card companies may be summoned to Number 10.
Gordon Brown has demanded an end to irresponsible lending by credit card companies. During his monthly press conference, he called for a new approach to lending that will ensure consumers are protected.
The prime minister urged credit card companies to stop hiking rates and to support those struggling to repay their debts as the country heads into a recession.
"I think we have got to bring the credit card industry in to talk to them to join with us in establishing clear principles to apply to the costs people face on their existing debts," he remarked.
And he suggested that by lending more responsibly, credit card providers can help to rebuild consumer confidence and encourage the public to look upon the industry more favourably.
Downing Street has confirmed that business secretary Peter Mandelson will meet with representatives of credit card companies to discuss potential new best practice guidelines for the industry.
However, according to the Guardian, Barclaycard and Nationwide have both said they have no plans to reduce their credit card rates, while PayPal has increased the rate on its card from 12.9 percent to 16.9 percent.
According to a report by Datamonitor, spending on credit cards is expected to fall this year as consumers make fewer big ticket purchases.
