Lorely Burt: Coalition clampdown on unfair bank charges welcome

The Coalition Government has announced measures to clamp down on unfair bank charges following a review of consumer credit and personal insolvency.

Liberal Democrats have led calls to end unfair bank charges and give consumers more choice. Today's announcement also includes measures to:

• End introductory offers for store cards that tempt customers into expensive credit arrangements
• Ensure bank customers have the option of getting text or email alerts if they are close to going into the red

The Coalition Government's response came from Liberal Democrat Business Minister Ed Davey and follows last year's Private Members Bill calling for an end to unfair bank charges by Co-chair of the Liberal Democrat Parliamentary Business Committee, Lorely Burt.

Commenting, Lorely Burt said:

"The measures are a welcome step for consumers. They will provide transparency and security without burdening businesses with additional regulation and legislation. These steps demonstrate what the Coalition Government can achieve by working closely with industry.

"Liberal Democrats have always been at the forefront in taking on unfair bank charges. We were the only party to challenge them in our manifesto and now we're making sure something is done about them by the Coalition Government.

"I brought my Private Members Bill forward because I know the huge concern there is over extortionate level of the charges that people can be hit with by going a couple of pounds over their overdraft. This agreement will give individuals real control over their finances and provide the transparency that Liberal Democrats have long been calling for."

<hr/ />