Nationwide has pledged not to increase its customers’ credit card limits without asking.
The change is one of a number being made by the building society as part of a wider review of its credit card terms and conditions.
Nationwide said it wants to stamp out confusion over rates, end dates and limits – making its credit cards more customer-friendly and easier to understand.
It promised not to increase customers’ credit card limits without their knowledge and claimed it is the first provider to make such a commitment.
Customers will instead be asked if they would like to increase their credit limit, in line with improvements suggested by a recent Financial Conduct Authority (FCA) market study into credit cards.
Nationwide has also amended its statements to make them easier to understand. Customers will now be able to see how much interest is being charged on each part of their balance.
Promotional offer end dates will also be added to monthly statements, so customers will always know exactly when an offer ends and when they will move to the standard APR.
Terms and conditions have been reduced in size by around 15% and re-written to make them more user-friendly. New versions of the terms and conditions have been sent to all Nationwide credit card customers.
John Crossley, Nationwide’s head of credit cards and personal loans, said: “Our plan to make credit cards more customer-friendly is based on a series of positive changes that together create a product that can be trusted and understood in equal measure.
“As responsible providers, we need to encourage customers to understand their terms and conditions and our view is that anything we can do to make them easier to digest is a step in the right direction.
“Nationwide prides itself on doing the right thing for our customers. We hope that these latest changes build on this commitment.”
The FCA’s credit card market study analysed the credit card accounts of 34m customers over a five-year period and surveyed around 40,000 consumers.
As well as recommending that providers stop automatically increasing credit limits and making promotional offer end-dates clearer, the FCA said firms should disclose more information to encourage faster repayment and provide a wider range of pre-set repayment options.