Government reviews consumer credit

The Government has launched a consultation on how to ensure consumers receive a better deal when they borrow money.

The Coalition Government has pledged to end unfair bank charges and this moves it nearer to fulfilling this promise.

Other plans include putting into place a seven-day cooling off period for people taking out store cards, along with providing the regulator with the power to set maximum interest rates on store and credit cards.

It could also become compulsory for credit card providers to issue electronic statements to allow people to review if another provider would offer them better value.

Ways to help borrowers who run into financial difficulties will also be considered by the review.

"Well-informed, empowered consumers are central to our vision for how a credit market between customers and lenders should work," said consumer minister Edward Davey. "I want to encourage both to take responsible decisions and to strengthen protection where necessary - particularly for the most vulnerable.

"If things go wrong people face a confusing array of debt remedies, so I also want to examine how the existing insolvency regime can be made to work better."

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