New Government Proposals in respect of high Interest Rates

The new Liberal Conservative Governments has announced plans to crack down on the excessive interest rates charges on credit and store cards. These measures will give regulators new powers to ban what are deemed to be unfair rates of interest charged by these lenders.

Aggressive action by bailiffs and unreasonable charging orders on property will also be under the spotlight, with more protection for the consumers being provided. Courts will also be given additional power to insist that property repossession is always the last resort.

As you would expect, there has already been comments that the above action in respect of interest rates on store and credit cards could restrict competition between card providers and thus reduce choice for consumers.

Unfair banking and financial transaction charges will also be addressed by the new measures.

It will be interesting to see what, in reality, changes.

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