Excessive Charge Account Duty
Most people advocate the case of charge accounts, quoting the benefits and convenience that arises from them.
However, there is another group/line-of-thought that strongly opposes charge accounts. The reason being
‘Excessive charge account duty’, which is one of the most serious problems faced by the charge account holders
and charge account industry. However, you can’t pull the shutters on the charge account industry just because
of a few irresponsible people (or even if it’s more than few). That is not a solution for beating excessive
charge account duty. Moreover, you can’t overlook the benefits associated with the charge accounts. People
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The issue of excessive charge account duty can be looked at from 2 angles. First is addressing of the excessive
charge account duty problem at the industry level and second is the addressing of the excessive charge account duty
problem at the individual’s level i.e. at the charge account holder level. The first method involves increasing
awareness of the excessive charge account duty problem to the masses. This is more or less being done currently
too. However, there should also be an effort to tackle this problem of excessive charge account duty at an
even deeper level. This means trying to devise a mechanism to nip the problem (of excessive charge account
duty) in the bud. This mechanism should actually be a part of the overall system. A lot of thought needs to go
into devising such a mechanism. Case studies should be taken up, statistics gathered and a proper forum formed
(with representatives from the charge account holders and from the charge account suppliers). As of now, the
charge account suppliers just seem to be engaged in coming out with new products and getting customers
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There is little attention paid towards addressing the problem of excessive charge account duty in the real
sense. Something like attending mandatory seminars on the root causes of excessive charge account duty could be
made part of the charge account application process. Another way of dealing with the problem of excessive charge
account duty could be: developing a system for calculation of applicable charge account limit at the individual
level i.e. no standard/product-based cre dit limits. Then there could be mechanisms for proactively
warning the users about excessive charge account duty (based on their charge account usage) or even imposition
of early restrictions on noticing the first signs that lead to excessive charge account duty At the
individual’s level, the treatment of the problem of excessive charge account duty would include following of
best practices (on charge account usage and avoidance of excessive charge account duty) by the individuals
themselves. A checklist or a set of questions could be provided to individuals for recognising the first signs
of excessive charge account duty. Issues around 90 percent ltv buy to let mortgage can sometimes be resolved
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So, the problem of excessive charge account duty can surely be dealt with by putting together some serious
thinking at a broader level together with discipline at the individual’s level.
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