Labour’s top priority is to help families through the current global economic downturn as fairly as possible. The Government has today met with major credit card companies so that households who are experiencing trouble paying their credit card bills as a result of the economic downturn are treated fairly over the coming months.

There has been evidence of card lenders significantly hiking up people's rates, as well as broader concerns about the failure of many companies to pass on cuts in interest rates to borrowers struggling to repay their debts.

The Labour Government is asking the companies to:

* look at offering people alternative options if they face large rate increases
* give them more notice of a change so they have time to shop around for another deal or bring down their outstanding balance.
* consider introducing a breathing space to give people time to get back on their feet.
* report back to the Government before Christmas with a statement of fair principles

Labour's Consumer Affairs Minister, Gareth Thomas, said:

"The Government is deeply concerned that borrowers aren't getting a fair deal. That's why we've taken swift action to bring the industry in to look at how costs are being applied to people's existing debts.

"We want to work constructively with industry to draw up a set of principles that will enable them to keep lending and will also ensure borrowers are treated fairly and in a way that best helps them pay off their debts"