The Coalition Government has announced measures to clamp down on unfair bank charges following a review of consumer credit and personal insolvency.
Liberal Democrats have led calls to end unfair bank charges and give consumers more choice. Today’s announcement also includes measures to:
- End introductory offers for store cards that tempt customers into expensive credit arrangements
- Ensure bank customers have the option of getting text or email alerts if they are close to going into the red
The Coalition Government’s response came from Liberal Democrat Business Minister Ed Davey and follows last year’s Private Members Bill calling for an end to unfair bank charges by Co-chair of the Liberal Democrat Parliamentary Business Committee, Lorely Burt.
Commenting, Ross Pepper, Lincoln Lib Dem Chair said:
“The measures are a welcome step for consumers. They will provide transparency and security without burdening businesses with additional regulation and legislation. These steps demonstrate what the Coalition Government can achieve by working closely with industry.
“Liberal Democrats have always been at the forefront in taking on unfair bank charges. We were the only party to challenge them in our manifesto and now we’re making sure something is done about them by the Coalition Government.
“”Many people tell me how annoyed they are at the extortionate level of charges that people can be hit with by going a couple of pounds over their overdraft. Giving people the option of having email/text alerts when they are near to going overdrawn, can cut the chance of people accidentally going overdrawn and getting stung with big charges. They also help people avoid being hit by rip off rates on store card deals. This agreement will give individuals real control over their finances and provide the transparency that Liberal Democrats have long been calling for.”"