Banks still using credit cards to encourage debt

THE big banks are still free to bump up spending limits on credit cards without the say-so of cardholders — despite a ban proposed two years ago to protect consumers.

In early 2005 the Financial Regulator unveiled plans to outlaw the practice, saying banks were making it too easy for people to get deeper into debt.

Yesterday the regulator admitted the curb had yet to be brought in, insisting the banks had been tied up implementing other consumer protection measures instead.