In a joint move with the Treasury, the Department for Business, Innovation, and Skills recently announced that they are interested in establishing a way for consumers to be able to use credit cards and other sources of debt more fairly.
Additionally, in a review recently launched by Mark Hoban, the Treasury’s Financial Secretary, and Edward Davey, Consumer Minister, ways in which the government can lend aid to those who have run abreast of financial difficulties will be explored, which could result in more power being granted to the Financial Services Authority to institute interest rate caps on store and credit cards.
As a result, the coalition Government has been inviting consumers in the UK to chime in on a number of possible solutions, including such actions as the introduction of a week long store card cool off period; regulating bank fees and charges that may be unfairly high; the introduction of regulatory powers with the authority to institute credit card and store card interest rate caps; and instituting a requirement to make online banking statements more easily readable by consumers in order to make a determination on whether changing credit card providers might result in better rates for the consumer.
Edward Davey, the coalition government’s Consumer Minister, released a related statement in which he remarked that empowered, well-informed consumers in the UK is pivotal for the government’s vision in regards to how the credit market landscape should be between lenders and customers.
Minister Davey added that he wanted to encourage both customers and lenders to make decisions with responsibility and also to institute increased protections when it may be necessary – especially for those consumers who are more vulnerable than others.
The review results will be turned into proposals for the government to examine in the coming year.