Credit card repayments "fairer", bank says

8 October 2008

Changes recently implemented by HBOS concerning minimum monthly credit card repayments have made the system "much fairer", the bank has said.

According to a statement made by the company, the alterations mean that consumers are always required to repay an element of the outstanding balance.

It described the changes as an example of "responsible lending".

In a development which may be of particular interest to consumers trying to clear their debt, HBOS has introduced rules which mean that, where a person`s credit card balance is greater than £5, they will either repay one per cent of the amount outstanding or the total of any charges, including interest and insurance premiums, plus £5.

HBOS said: "Crucially, the customer will always pay whichever is the greater of the two amounts."

In other industry news, figures produced recently by uSwitch.com suggested that eight companies in the UK have increased unsecured personal loan rates by as much as nine per cent over the last 28 days.

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