The prime minister Gordon Brown has announced government plans to curb the amount of money that credit card companies are lending to consumers who do not have the means to repay the money made accessible to them.

He said at the Which? Listening to Consumers event in Westminster, that there were plans to 'clamp down' on irresponsible lending, forcing credit card companies to lend more cautiously in the future.

“We have got to give real help to people now. We can't be in the situation where we walk by on the other side when people are in difficulty,” said Prime Minister Gordon Brown.

He added: “I think we need new measures to provide clarity for debtors and certainty for creditors. I believe we will help to clear up some of the very bad practices in the credit card market.”

He went on: 'We are looking at every aspect of debt, mortgage and other problems.”

On the morning of that same day, Consumer Affairs Minister Gareth Thomas had said: “We are concerned that people may be tempted to borrow irresponsibly if credit card companies increase borrowing limits without this being requested by customers, or send out unsolicited credit card cheques. It's vital we protect consumers at this time and we are exploring these issues carefully.”

Peter Vicary-Smith, chief executive at Which? Welcomed the announcement from Mr Brown, saying that he believes credit card companies had gone unregulated for too long, encouraging customers to spend beyond their means in a way which he described as 'immoral.'

“Credit card companies have been allowed to get away with encouraging people to spend more than they can afford for far too long,” said Mr Vicary-Smith.

Taking a passionate stance on the matter, he went on, saying “Sending people unsolicited credit card cheques and extending their credit limits without being asked, in the hope of tempting them to overspend, is not just irresponsible – it’s immoral.”

He added that he was supportive of the government's decision to step in, describing the move as 'a victory for consumers.'

“Stamping out these toxic credit practices is a clear victory for consumers.  After six years of Which? campaigning against unsolicited credit card cheques, it’s heartening to hear that the Government will now act,” he said.

Finally he expressed hope that this could be the end of unsolicited lending, saying: “If the Government moves quickly to stamp out these temptation tactics, it will send a clear message that there is no going back to the irresponsible lending of the past.”

However, some critics are dismissive of the new regulations, describing them as 'too little, too late,' seeing as the country is in the grip of an economic crisis.

Chris Barraclough, chairman of Barraclough Edwards Chamberlain, said: “The government should have acted five years ago when this kind of marketing was more prolific. Credit card marketing landed itself in a junk mail ghetto back then but there is minimal activity now. The government is definitely acting after the horse has bolted."