Oxera has recently published an independent report analysing the economic impact of proposed credit card regulations in response to a consultation initiated by the UK Department of Business, Innovation and Skills (BIS). The Department's October 2009 consultation document includes proposals to raise the minimum payment on credit cards, restrict issuers' ability to apply risk-based pricing to existing balances, prohibit unsolicited credit limit increases, and reverse payment allocation (ie, apply payments to the most expensive debt first). Oxera has analysed these proposals based on both economic theory and data provided by UK credit card companies on actual credit card usage.

The study assesses both whether BIS's concerns about the business practices of credit card companies indeed harm consumers in practice, and the impact BIS's proposals would have on consumers. Oxera's report has been published as part of the industry response put forward by the UK Cards Association.