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02/07/2009
Government Action To Secure A Better Deal For Consumers
Cracking down on persistent rogue traders and a ban on unsolicited credit card cheques are at the forefront of measures announced in the Government's Consumer White Paper today.
'A Better Deal for Consumers - Delivering Real Help Now and Change for the Future' sets out action to promote responsible borrowing and lending and provides a longer term framework to enhance and enforce consumer rights in the wider economy and a changing world.
Today's announcement builds on the real help already provided for homeowners, pensioners, savers and those struggling on low incomes and follows Building Britain's Future, which set out Government's plans for creating growth and jobs as the economy moves out of recession.
Business Secretary Lord Mandelson said: "The Government is determined to help consumers during the current economic difficulties. Many family budgets are under unprecedented strain.
"We're already providing targeted help to protect people from falling into debt and to support those who get into difficulty.
"But we need to do more. Our aim is to help consumers make better informed borrowing decisions."
The review of the regulation of credit cards and store cards will examine if restrictions should be placed on the raising of interest rates on existing debts; if minimum monthly repayments should be raised to combat debt levels; if the practice of increasing borrowers' credit limits without their prior consent should be banned; and what order debts built up on a credit card should be paid off.
New requirements will be introduced on all lenders to check consumers' creditworthiness before they borrow; to explain financial products fully including the consequences of failure to repay; and to comply with new OFT guidance to tackle irresponsible lending.
In addition, consumers will be able to compare the cost of different credit cards based on the way they intend to use them. Following consultation, the Financial Services Authority's Moneymadeclear website will host a new, impartial comparison table, helping consumers make the right and informed choice for them.
(JM/BMcC)
'A Better Deal for Consumers - Delivering Real Help Now and Change for the Future' sets out action to promote responsible borrowing and lending and provides a longer term framework to enhance and enforce consumer rights in the wider economy and a changing world.
Today's announcement builds on the real help already provided for homeowners, pensioners, savers and those struggling on low incomes and follows Building Britain's Future, which set out Government's plans for creating growth and jobs as the economy moves out of recession.
Business Secretary Lord Mandelson said: "The Government is determined to help consumers during the current economic difficulties. Many family budgets are under unprecedented strain.
"We're already providing targeted help to protect people from falling into debt and to support those who get into difficulty.
"But we need to do more. Our aim is to help consumers make better informed borrowing decisions."
The review of the regulation of credit cards and store cards will examine if restrictions should be placed on the raising of interest rates on existing debts; if minimum monthly repayments should be raised to combat debt levels; if the practice of increasing borrowers' credit limits without their prior consent should be banned; and what order debts built up on a credit card should be paid off.
New requirements will be introduced on all lenders to check consumers' creditworthiness before they borrow; to explain financial products fully including the consequences of failure to repay; and to comply with new OFT guidance to tackle irresponsible lending.
In addition, consumers will be able to compare the cost of different credit cards based on the way they intend to use them. Following consultation, the Financial Services Authority's Moneymadeclear website will host a new, impartial comparison table, helping consumers make the right and informed choice for them.
(JM/BMcC)
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Consumers and lenders could do more to consolidate debts: OFT
Better financial awareness among consumers, and clear, accurate and relevant information from credit providers are required to make the use of debt consolidation fairer and more transparent, according to a study from the Office of Fair Trading (OFT) published today. The OFT has estimated that, in 2002, £32 billion of unsecured lending and £8.
17 December 2004
Consumer credit shake-up targets rogue lending
Tough new sanctions on rogue lenders could be introduced under a new Bill introduced in the House of Commons by Trade and Industry Secretary Patricia Hewitt. Measures in the Consumer Credit Bill would create a fairer, clearer and more competitive credit market, by bringing in new rules to give consumers better protection and more rights.
Consumer credit shake-up targets rogue lending
Tough new sanctions on rogue lenders could be introduced under a new Bill introduced in the House of Commons by Trade and Industry Secretary Patricia Hewitt. Measures in the Consumer Credit Bill would create a fairer, clearer and more competitive credit market, by bringing in new rules to give consumers better protection and more rights.
01 February 2011
New Rights To Benefit Consumers
Consumers should take advantage of new rights aimed at protecting them and encouraging lenders to act more responsibly, Consumer Minister Edward Davey said today as the EU Consumer Credit Directive came into force.
New Rights To Benefit Consumers
Consumers should take advantage of new rights aimed at protecting them and encouraging lenders to act more responsibly, Consumer Minister Edward Davey said today as the EU Consumer Credit Directive came into force.
08 October 2003
M&S backtracks over &More credit card after OFT probe
Marks and Spencer Financial Services (MSFS) has changed the way it will offer to replace its store cards by the &More credit card after action by the Office of Fair Trading. MSFS had sent out letters to many card holders saying that its store card would automatically be replaced by the &More credit card unless card holders objected.
M&S backtracks over &More credit card after OFT probe
Marks and Spencer Financial Services (MSFS) has changed the way it will offer to replace its store cards by the &More credit card after action by the Office of Fair Trading. MSFS had sent out letters to many card holders saying that its store card would automatically be replaced by the &More credit card unless card holders objected.
15 April 2004
UK credit card debt rises to £53.5bn
Credit card debt has grown to its largest ever figure with the average UK card holder owing more than £1,100, according to the latest report. Outstanding balances on credit cards have risen by more than two-thirds over the last four years, mainly as consumers become more familiar with using credit cards to make purchases.
UK credit card debt rises to £53.5bn
Credit card debt has grown to its largest ever figure with the average UK card holder owing more than £1,100, according to the latest report. Outstanding balances on credit cards have risen by more than two-thirds over the last four years, mainly as consumers become more familiar with using credit cards to make purchases.
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