A new consumer initiative announced by the government today could help to provide additional help for the Financial Ombudsman, one expert has suggested.
Measures planned as part of the Consumer White Paper include banning unsolicited credit card cheques and consultations on the regulation of store credit cards to ensure customers do not run up excessive debt.
A Consumer Advocate agency will also be established that will work to educate individuals on how to recover money when circumstances take a turn for the worse.
Personal finance expert at comparison site uSwitch.com Louise Bond said that while the plans revealed are “quite vague”, it may be beneficial as back-up.
She remarked: “Perhaps this could serve to take some of the pressure off [the Financial Ombudsman] when they have so many other issues to deal with.”
According to uSwitch.com figures, 5.7 million individuals have been given an extension to their credit card limit in the last year without being informed.
By Francis Finch