CREDIT card companies will be forced to put financial health warnings on statements, explaining the risks of repaying only the minimum amount each month, under measures expected to be announced today in the Queen’s Speech.

MPs on the Treasury Select Committee have called for credit card companies to tell customers how long it will take to clear a debt if only the minimum repayment is made after it emerged that a borrower could take more than 20 years to repay £5,000.

Under the new Consumer Credit Bill, card companies will have to obey the tough new guidelines, which will include a minimum type size for the warnings. They will also have to tell customers how much it costs to repay a card debt via the minimum amount, which is typically between 2 and 5 per cent of the balance.

For example, a credit card with an interest rate of 13.9 per cent could have to warn customers that if they make only the minimum payment of 2 per cent each month, it will take 19 years and cost £2,013 to clear a debt of £1,000, according to the Treasury Select Committee.

The Association for Payment Clearing Services (Apacs), a body that represents credit card companies, said its members had already taken steps to warn customers against only paying the minimum amount.

However the warnings are expected to be stronger than the current wording used, which states: “If you make only the minimum payment each month it will take you longer and cost you more to clear your balance.”

Norman Lamb, the Liberal Democrat MP for Norfolk North and a member of the Treasury Select Committee in the last Government, said: “The minimum repayment is a trap which sadly many people fall into and it is essential that they are aware of the dangers.”

Mike Naylor, principal researcher at Which?, formerly known as the Consumers’ Association, said: “Paying just the minimum is never a good idea. It takes years to clear the balance and costs thousands of pounds in interest.”

The Bill is expected to include measures for the formation of an alternative dispute resolution service to help borrowers launch fast-track complaints against card companies. The Office of Fair Trading is also expected to have its powers strengthened, enabling it to fine banks and credit card companies up to £50,000. It will also have greater investigative powers including the right to question associates of a broker or lender under investigation.

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Leeds University’s Credit Management Research Centre has found credit cards to be the fastest growing force of consumer debt.