Credit card issuers will be prevented from raising customers’ borrowing limits without their permission, and banned from sending out unsolicited “credit-card cheques”, under proposals announced in this week’s consumer affairs white paper. But consumer groups have expressed concern over the delay in implementing the measures, while the government carries out a review of lending practices.

“While this review is being carried out, we continue to see providers hike fees and charges across all credit card terms and conditions,” said Louise Bond at uSwitch.com, the consumer website. “In the last year alone, purchase APRs have gone up by 0.74 percentage points, costing consumers anything up to £288 in interest each year. It is these types of rate hikes that must be controlled, otherwise it could lead to a downward spiral for many people struggling with debt.”

Which?, the consumer group, urged the government to introduce new regulations quickly. “The important thing is that no time is wasted in turning these proposals into tangible benefits for consumers,” said Peter Vicary-Smith, chief executive.

Last year, 5.7m people had their card limits raised without their consent, and more than 14m were sent credit card cheques – 97 per cent of which were unsolicited, according to uSwitch. These cheques were used for £3.6bn-worth of spending, earning card issuers £571m in fees and interest.