Government's crackdown on bank charges 'good news for consumers'
Government's crackdown on bank charges 'good news for consumers'
- Tuesday, 25 May 2010The coalition government's plan to tackle unfair bank charges is 'good news' for consumers, according to an expert.
On May 20th the government announced that it would make card companies provide more information to borrowers to ensure they get the best deal and to end unfair bank charges such as those imposed when someone exceeds their overdraft limit.
Darren Cook, a spokesperson for Moneyfacts, which provides independent financial information, believes it is about time that the government addressed the issues surrounding bank charges.
He said: "It is about time they looked at the charges. They have to get the regulation together, as these charges normally affect the people who can least afford them. It is important we get this in an orderly fashion, so it is good news for the consumer."
Whitehall has also announced that it will define and ban excessive rates on credit and store cards, which could stop consumers getting into
debt problems.
Through these proposals consumers could avoid credit-card debt through better choices and lower interest rates and not need
debt help.
However Mr Cook warned that as providers will no longer be making money from these charges they could decide to add higher interest rates to their loans and cards.

Recent Debt Management Plan News
56% of Brits have no life insurance which could leave family with debt problems
Wed, 04 May 2011More than half of UK adults currently have no life insurance cover, which could mean their loved ones are left with
debt problems when they die...
Brits thinking about retirement advised to seek debt advice
Tue, 03 May 2011Consumers considering their retirement options have been advised to seek professional advice, as they may end up with
debt problems in the future...
Brits planning to attend a wedding should start saving to avoid debt problems
Thu, 28 Apr 2011Consumers concerned about getting into
credit card debt to pay to attend a wedding may want to use their savings instead...
Couples planning their big day can avoid debt problems by negotiating a cheap wedding
Wed, 27 Apr 2011Couples-to-be worried about needing
debt advice in the future after paying for a wedding can ensure they avoid accruing
debt problems by negotiating a cheap wedding...