Labour is committed the law to cut credit card debt

PA

Legislation that limits the amount of interest that can be charged on the credit card debt was promised by the Labor Party.

According to the amendments, no one is willing to pay more in interest that they had originally borrowed.

Shadow chancellor John McDonnell, says more than three million people are “trapped” by credit card debt.

He will present the draft amendment of the law in a speech to the Labour conference in Brighton.
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Labour said the changes would work in a way similar to that of the measures of payday loans, which entered into force in 2015.

The Financial Conduct Authority has prompted new measures to help people in a “persistent debt” as a result of credit cards.

The regulator says more than three million people are in persistent debt, which is defined as paying more interest and fees that they paid off their loans over a period of 18 months.

Labour has said its “total cost cap” would help “address a persistent debt spiral”, claiming the growing consumer debt has become a “threat to our economy”.Lenders unscrupulous

Addressing delegates in Brighton, Mr McDonnell said: “The Financial Conduct Authority has supported the actions to be taken on the credit card debt as payday loans.

“I have called on the government to act apply the same rules to payday loans for credit card debt.

“It means that no one will ever pay more in interest to their loan.

“If the Tories refuse to act, I can announce today that the next Labour government will change the law.”

UNITED kingdom Finance, which represents the financial and banking sector, he said that it was committed to responsible lending and the consumer credit is important for economic growth.

It added that “the last thing the industry wants is to see those who are most vulnerable to be pushed into the hands of unscrupulous and unregulated lenders”.

When the FCA is called to action in the month of April, the UK Cards Association, which represents the major credit card providers, said the industry was “committed to helping the minority of cardholders who do not use a credit card in a way that it is in their interest”.

The Conservatives, said the action had already been taken to outlaw “rip-off credit card charges” and ensure that businesses to help customer to clear the debt.Brexit line

In a day of Work conference, the position of the party on Brexit has come under scrutiny as a leader, Jeremy Corbyn facing calls to keep the UK in the EU single market – and some meps have expressed anger as no proposals Brexit, has been selected for debate on the floor.

Brexit Secretary Keir Starmer to speak in the auditorium on Monday, when is it expected to tell the Tory approach to the negotiations on an exit from the European Union, reveals the “post-imperial delusions” of Theresa May’s party.

Instead, it promises a promise of a “democratically legitimate and economically reasonable”.