The Consumer Credit Directive (CCD) is an initiative that was brought into force in February 2011. The main goal of the CCD was to establish a set of rules for the credit market across the EU. It was designed to protect customers, improve understanding of products and help consumers taking out unsecured credit, such as a loan or credit card.

It is this new Consumer Credit Directive and its European laws that some credit card companies have allegedly been using to take advantage of borrowers. The companies are reportedly promoting catchy credit card deals, for which almost half of consumers would not be eligible for.

There are more and more credit cards which do not charge any interest for a set period available now to customers who are switching from a different provider. However, the number of people that are eligible for these introductory offers has dropped significantly since the introduction of the CCD.

Consumer groups claim that creditors are now using these extra-long 0% introductory rates as a way to entice customers into applying for the credit card products, now that they have to give the deals to fewer applicants.

With the cost of borrowing money at a record low and the law changing, allowing credit companies to decline more applications, there are now a greater number of deals available. The number of credit cards with an interest-free balance transfer period of 12 months has increased by around 200% over the past two years, but post-CCD only around half of the successful applicants are now accepted for the deals.

Previously, before the introduction of the Consumer Credit Directive, credit providers had to offer at least two-thirds (67%) of successful applicants the advertised rates on credit card deals, but this has dropped to just 51% under the new system.

The new laws brought in across the EU were designed to ‘harmonise consumer credit laws’ but the British Bankers Association had warned that more than 1.7 million consumers would be impacted upon negatively, and might even find they are unable to obtain credit.

In contrast, the UK Cards Association said that the directive has not made a significant impact and that the credit card market would continue to be extremely competitive. Despite the fact there is a period of low interest, or a 0% balance transfer offer, with credit card deals, interest rates remain at the highest level for more than 13 years.

If you want to apply for the best credit card deals it is important to think about what you want to use the card for. There isn’t one credit card which will suit everyone, so you will need to research the types of cards that will suit you. As we have said, there are many great credit card deals, including 0% balance transfer deals, you can take advantage of. However, your credit history will be more important than ever.

One of the best ways to find great credit card deals and go on to apply for a credit card is to use online comparison sites, as these are able to provide you with a good idea of rates across the whole market.