Always Be Wary of Unregulated Credit Cards
cards that are used by consumers for business use could still be liable to sudden and unannounced interest
rate hikes, harsh penalties and sky high fees. All that despite the recent introduction of credit card
regulations that were introduced last year to stop things like this from happening in the business credit
card market. The big news is that it is still very much going on today.
result of this is that many consumers are not aware what they are letting themselves in for, especially if
they haven’t read and re-read every single word of the small print that comes with the initial credit card
application. For it’s already too late for a lot of consumers who are told that it’s “nothing personal” by
many credit card suppliers, it’s “only business”.
credit card regulations that have been introduced in the last 12 months have failed to apply to credit cards
that are for commercial or business use. And whilst they have been considered a huge success for enabling
consumers to understand personal credit card agreements more thoroughly, the same cannot be said for their
recent study into business or commercial credit card practices said that many commercial consumers could
still be at risk from high interest charges and late repayment fees. They went onto say that more commercial
consumers could be victim to these expensive charges as just under 11 million business credit card offers are
sent out to households throughout the country each month.
study went on to look at many of the country's leading banks and commented that nearly 90% of these banks
were continuing with these practices, that many consumers deem to be unfair. One example of these practices
is hikes on interest rates on existing balances. Whilst this is not allowed on personnel credit cards, this
is very much a big concern for many business users.
also went onto comment that it is many small businesses that are affected by these rates as many business
credit card offers and applications are actually sent to people’s homes. This is also a major concern as many
new start-up businesses are run from residential addresses during their first few years of trading.
spokesperson for the study went on to state that business consumers should also be covered under the same
rules and regulations that cover personal credit card agreements. They also stated that it is up to
regulatory bodies within the financial industry to reach an agreement between the credit card companies that
is fair for all business consumers.
people within the industry have also claimed that credit card companies could be trying to sift personal
credit card consumers over to business cards, although this claim is nothing more than industry gossip and
hearsay and is not substantiated in anyway.
recent years has seen an increase in the number of business credit card offers and promotion packs that are
being sent to people at their private residential address.