The ‘ConDem’ Government is stepping up its review of the UK’s consumer credit and insolvency crisis by investigating credit card rates and ‘unfair bank charges’.
According to the Press Association, the Government has launched a consultation on steps that can be taken to ensure consumers get a better deal when they borrow money.
As well as tackling bank charges, it also plans to introduce a seven-day cooling off period for people taking out store cards, and give the regulator the power to cap interest rates on credit and store cards.
The coalition Government`s review will also consider whether credit card companies should provide electronic statements to enable customers to decide whether another credit card deal would be better value for money.
Consumer minister Edward Davey said: “Well-informed, empowered consumers are central to our vision for how a credit market between customers and lenders should work.
“I want to encourage both to take responsible decisions and to strengthen protection where necessary – particularly for the most vulnerable.
“If things go wrong people face a confusing array of debt remedies, so I also want to examine how the existing insolvency regime can be made to work better.”
Financial Secretary to the Treasury Mark Hoban said: “This Government is committed to curbing unsustainable lending and helping individuals manage their finances better. I believe that improved competition will deliver a better deal for everyone, and that financially capable consumers are best placed to drive competition.”
The Government is calling for evidence on the issue and hopes to publish its proposals next year.