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Those in the know think that it is time there was a supervisory body to watch out for interest rates on plastic.

Credit card companies have terrorized people with outrageous interest rates forced on their cardholders. Actually, interest can touch as much as 20% on dues incurred on plastic which has led to several customers getting into deep financial trouble.

Banks issuing credit cards have been running rampant when dealing with interest fees and many financial experts feel it is because they have been allowed to run with it in the absence of any statutory body. Purveyors of plastic justify the misold PPI and interest charges, to themselves presumably, that the high percentage is a necessity in order to match the giant profits they get with the non-payments.

Looked at logically, they should be able to see the non-payments are because of the exorbitant interest they want and that’s it, a number which can rise even higher because of lapsed payments or if simply the minimum amount due is paid.

Although there is a benchmark interest rate of 0.5 % in the British Isles, the rates for plastic can just break all barriers. It is high time this state of affairs is being questioned and it is not just money specialists, but common consumers who make use of missold PPI and plastic and have been horrified by the massive rates of interest who believe it is high time the companies were put on a leash.

Credit card outfits have a lot of thinking to do as does the the just-elected government. Customers are fed up of being made to give such high payments on even simple buys simply because they utilized their card for the acquisition. Adding 20 pounds to a 100 pound transaction is serious business and the more the money given for the goods or services, it is clear that shoppers will be struggling to repay.

Clearly the question that naturally comes up is how much authority will the controlling group if ushered in be allowed? Will it have sweeping powers similar to the Bank of England to watch over matters regarding credit cards? Will it be provided with the authority to fine offending credit card firms being over a certain benchmark interest rate?

These are matters that need to be looked into although experts and the common man hopes the responses on mis sold PPI do not take a long time coming or more people will even go bankrupt.

Obviously regulation of the credit card segment is a necessity. For long, credit card companies have been getting away with claiming outrageous interest fees and the consumers have had to suffer. Many have even declared insolvency on account of the profiteering of the credit card issuers.

Tags: mis-sold ppi, ppi claim, ppi claims, ppi reclaim