New policies to give consumers "stronger protection"
By Elliot Wright, 20th May 2010
The coalition government is set to put an end to 'unfair' bank
charges as part of a promise to strengthen consumer
protection.
In what would be a massive boost for consumers still ruing
the Office of Fair Trading's defeat in the bank charges test
case to the major High Street banks, the government has
proposed to "end unfair bank and financial transaction
charges".
For years, banks have been levying charges, which have widely
been described as disproportional and unfair, on customers who
exceed their authorised overdrafts.
It is thought that financial institutions have taken over £2bn
in bank charges from consumers, as well as millions more in
over-the-limit and late payment charges on credit cards.
Brad Askew, managing director of claims management firm Claims
Financial said: "It is fantastic news that the government has
recognised the need for stronger consumer protection from
unscrupulous and greedy banks.
"However, millions of people have already been charged billions
of pounds over the last few years and there is no word on whether
they will ever be refunded or not. If the government thinks bank
charges are indeed "unfair", I hope they see sense and order the
banks to offer some kind of redress to customers already
affected."
The government's programme also includes proposals to increase
transparency with credit cards, store cards and energy bills.
A free national financial advice service will also be
established, as well as measures to protect homeowners against
"aggressive bailiffs".
Ann Robinson of comparison site Uswitch.com said: "the
government is finally giving consumers the level playing field they
have so desperately needed.
"The outline they've given today signals a serious determination
to give consumers the tools and the information they will need to
be able to act like consumers and to get the best deals, products
and prices for themselves."
Claims Financial
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