Consumer credit and Insolvency - A Fairer Deal
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Issued 15 October 2010 - BIS
Consumer Minister, Edward Davey, and Financial Secretary
to the Treasury, Mark Hoban, have today launched a joint call for
evidence into how people can get a fairer financial deal as part of the
Government’s review into consumer credit and personal insolvency.
The Department for Business, Innovation and Skills (BIS) and Treasury
want to establish how people can get a fairer deal when borrowing
money, and if they can manage their borrowing better. The review will
also determine how best to improve the help available to those who run
into financial difficulty.
The call for evidence invites people to have a say on how the existing
consumer credit and personal insolvency regimes might be improved. It
seeks views on a number of Coalition commitments, including:
• tackling unfair bank charges;
• introducing a seven-day cooling off period for store cards;
• introducing a power for a regulator to cap interest rates on credit
and store cards; and
• requiring credit card providers to make electronic statements
available to enable consumers to judge whether an alternative credit
card would provide better value for money.
Consumer Minister Edward Davey said:
"Well-informed, empowered consumers are central to our vision for how a
credit market between customers and lenders should work. 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."
Financial Secretary to the Treasury Mark Hoban said:
"This Government is committed to curbing unsustainable lending and
helping individuals manage their finances better. I believe that
improved competition will deliver a better deal for everyone, and that
financially capable consumers are best placed to drive competition."
Following the call for evidence, the Government plans to publish its
proposals from the results of this review in 2011.
Notes to editors:
1) Edward Davey announced there would be a review of consumer credit
and personal insolvency on 13 July 2010. You can see the press notice
on this here:
2) All the relevant documents, video and podcast can be found here:
www.bis.gov.uk/consumer-credit. Interested parties have two months to
3) BIS wants to hear from members of the public as well as interested
businesses and charities. We have set up an easy-to-use Survey Monkey
poll on our website with ten questions that cover a range of credit
issues, such as:
* How confident are you that you have
the skills and knowledge to enter into credit agreements?
* Where would you look for help and
advice if you were to experience debt problems?
* Which of the following debt solutions
have you heard of?
* What factors do you think might stop
you seeking early advice if you were in debt difficulty
4) For further information, contact Olivia Campbell on 020
7215 5363 or
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Material taken from the BIS Department for Business, Innovation and
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Article Published/Sorted/Amended on Scopulus 2010-10-18 13:40:30 in Business Articles
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