Government ‘cracks down’ on lenders

New proposals have been set out by the government to help regulate the credit industry so as to ensure that consumers are better protected and treated fairly.

A consultation document to that effect has been published today (October 27th), detailing possible alterations to the repayment processes enforced by credit and store card providers.

Among other things, it will look at increasing the minimum monthly repayment levels, in order to encourage borrowers to pay off their debts in less time.

Consumer minister Kevin Brennan observed that it is time card companies “get their act together”, as the “complex and confusing terms and conditions” they have in place can work against the consumer.

He added that although borrowers “have a real responsibility” when it comes to managing their finances, they also retain the right to “clear information” that allows them to do so.

Meanwhile, the Treasury Select Committee has launched an investigation into the disadvantages caused to debtors by credit checks when trying to obtain cards and loan deals.

By Sarah Adie