Government looking into credit card consumer rights

By Lucy Bower

The Government is bringing in changes that will give greater protection to consumers, as part of the European Consumer Rights Directive. A consultation on how to implement the changes is being launched on Monday.

It wants more transparency in consumer contracts. Many customers have been caught out with high charges when phoning customer service departments, or paying for goods and services with their credit card, according to The Daily Mail.

Now, calling customer service helplines will not cost more than the basic rate.

Other changes being brought in include removing pre-ticked boxes for online shoppers, so they can 'opt in' for extras like insurance instead. The 'cooling-off' period is changing too. This is the time you are given in which to cancel a contract for goods or services when you shop online. At the moment it is seven days, but it's going up to fourteen days.

There's speculation that debit and credit card surcharges are coming to an end too.

Consumer group Which? welcomes new legislation in the area, but would like to see swifter action on credit card surcharges. Executive Director Richard Lloyd commented: "We're surprised the consultation to ban excessive debit and credit card surcharges has still not been published."

The Office of Fair Trading (OFT) estimated that air passengers, for example, spend £300 million a year in these charges.

Image © nithid18 - Fotolia

Tags: Which, Government, European Consumer Rights, Office of Fair Trading, OFT

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.