Government to consider capping rates on credit cards
Consumer Minister Ed Davey said: "I want to encourage both [customers and lenders]
to take responsible decisions and to strengthen protection where necessary - particularly for the most vulnerable".
"If things go wrong people face a confusing array of debt remedies, so I also want to examine how the existing insolvency regime can be made to work better."
Banks have written off around 10% of all money spent on credit cards in recent years, as a result of people been unable to repay their debts.
This has caused credit card costs to rise, even though the Bank rate has remained at a record low for some time now.
In June, the Office of Fair Trading stepped back from recommending that interest rates on short-term borrowing such as pawnbroking, payday loans and home credit be capped, arguing that imposing formal price controls would be both complex and possibly even against the interests of potential borrowers.
These loans filled a gap in the market serving people that could not borrow elsewhere, it said.
Government to consider capping rates on credit cards