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Cracking down on persistent rogue traders and a ban on unsolicited credit card cheques are at the forefront of measures announced in the Government’s Consumer White Paper today.
“A Better Deal for Consumers - Delivering Real Help Now and Change for the Future” sets out action to promote responsible borrowing and lending and provides a longer term framework to enhance and enforce consumer rights in the wider economy and a changing world.
Today’s announcement builds on the real help already provided for homeowners, pensioners, savers and those struggling on low incomes and follows Building Britain’s Future, which set out Government’s plans for creating growth and jobs as the economy moves out of recession.
Measures include:
- A wide ranging consultation on significant reforms to the regulation of credit and store cards to put consumers more in control of their borrowing and to help guard against people running up credit and store card debts they can’t pay off. This will balance the importance of choice and a flexible market with personal responsibility and protection from over-indebtedness;
- A ban on unsolicited credit card cheques which can tempt consumers unaware of the high interest rate charges to borrow money they cannot afford.
- A review by the Office of Fair Trading of the market for high cost credit, typically above 50% APR, such as pay day loans and door step lending;
- Appointment of a new Consumer Advocate responsible for co-ordinating work to educate consumers and to help them get their money back when things go wrong;
- New powers for the courts to ban persistent rogue traders; a new national specialist team for internet enforcement to tackle scams which con consumers on the internet; new money for a central ‘Fighting Fund’ to tackle rogue traders operating on a large scale; and a pilot scheme giving Trading Standards officers powers to help consumers get money back; and
- A new self-help tool-kit developed by the Money Advice Trust and a new Debtor’s Guide from the Insolvency Service to help people in debt take control of their finances.
Download the White Paper and supporting documents
Find out how the new rules might affect you and test your knowledge of consumer issues with the quiz below: