Protection from high interest rates
24th May 2010
Consumers have been promised a better deal from financial services firms through a series of Government proposals.
Excessive interest rates on credit and store cards may have seen their day if measures are introduced by the Conservative-Liberal Democrat coalition.
Unfair charges on bank accounts and other financial transactions may also never see the light of day again if the plans are successfully made law.
People will be given a seven-day cooling off period after taking out a store card, while credit card companies will also be obliged to give better information to their customers in a standard format, so that they can tell whether they are getting the best deal.
Income protection can also be used as an extra level of security to help meet credit card payments if a person becomes unable to work through illness or injury.
The Government plans to create a free national financial advice service, which will be funded in full from a new social responsibility levy on financial services firms.
Giving full details of the coalition agreement, ministers said: "The Government believes that action is needed to protect consumers, particularly the most vulnerable, and to promote greater competition across the economy."
The coalition also said energy companies would have to provide more information in their bills on how to switch to their cheapest tariff, as well as giving people details on how their energy usage compared with similar households.
It added that people with Post Office Card accounts would also be able to benefit from direct debit discounts, while firms would have to ensure that their social tariffs offered access to their best prices.
Copyright © Press Association 2010
