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Concern as consumers can now pay bailiffs with credit cards
Wednesday 27th January 2010In what is being seen as one of the most obvious examples of a vicious cycle, it has emerged that heavily indebted individuals will now be able to pay bailiffs using credit cards.
A Government trial that has allowed consumers in the south east of England to pay off their bills by credit card could soon be expanded to the whole of the UK
Justice Minister Bridget Prentice told MPs that although there was concern about the scheme from campaigners, the majority of consumers facing bailiffs had a small dispute or claim and denying them credit and debit card facilities would be inconvenient.
However, Conservative ministers have slammed the proposals, calling them “bizarre”.
Shadow Housing Minister, Grant Shapps, commented: “This callous approach will give the green light for aggressive bailiffs to demand credit card payments with menace, pushing some of the most vulnerable in our society deeper into debt.”
Other campaigners have expressed their fears that allowing people to pay debts by credit card will only make their financial situations more perilous.
For people with poor credit ratings, credit card interest rates can be as high as 40%, meaning that a low income family paying off a £1,000 debt by credit card could potentially be left with £400 of extra debt each year.
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