New credit card rules become law

Restrictions on how credit card issuers manage their customers’ over-limit spending and make offers of credit limit increases are now law.

The new law also regulates the application of payments, so a payment must be applied against that part of the outstanding balance on which the cardholder is being charged the highest rate of interest.

The law also introduces a requirement that lenders must provide a key facts statement with credit card contracts that sets out pricing and other information in a standardised format so consumers can compare products.

The credit card changes will apply from July next year.

Source: Banking Day