A review of credit card regulation will consider restricting companies from raising interest rates on existing debt. Lenders might also be forced to raise the bar on minimum payments, and be prevented from increasing credit card limits without the borrower's consent.

Other planned measures include a ban on unsolicited credit card cheques, and a review of 'payday loans' and other high interest credit.

"Consumers have been seriously affected by the past two years of turmoil in the financial markets, as well as by the longer term changes in the way that goods and services are bought and sold. We are taking decisive action now to prepare for the future," said Consumer Minister Kevin Brennan.

(Reporting by Rosalba O'Brien; Editing by Greg Mahlich)