MAKING FINANCIAL SERVICES WORK FOR CONSUMERS

The Government has today announced new proposals to ensure credit and store card companies give people a fairer deal. Stafford’s Labour MP David Kidney says that the proposals are in tune with a desire for more sustainable financial services in the future:
“The Government is consulting on proposals to:

• Change the rules so that the most expensive debt on your credit card is paid off first.  (Currently most credit card companies make you pay off the cheapest debt first);

• Raise the minimum monthly repayments levels to encourage people to pay off their debt faster;

• Ban the practice of increasing credit limits without prior consent; and

• Place restrictions on increasing the interest rate on existing debt.

“This announcement builds on a series of reforms designed to make financial services work for consumers. We need to make sure consumers are better informed, financial institutions are better managed, and markets are better regulated.

“The Government is planning legislation to make a reality of sustainable financial services for the future. For example, the ability of banks to pay bonuses will be restricted, consumers will benefit from a new national money guidance service and financial services firms will be required to hold more than adequate capital balances.

“I welcome today’s announcements and I will certainly vote for these additional protections for all consumers later this year in Parliament”.