New consumer protection laws on the way

The government is calling for a review of personal insolvency laws and lending regulations.  According to reports, the government is calling for evidence that would put forth practices, rules, and laws that would give the consumer a fairer stance in lending and credit practices.

It is revealed that the government wants to include reviews of practices such as, a credit card cool off period, unfair bank charges and an honest supply of lending information to consumers.  It is also reported that in this joint effort between Treasury and Department for Business officials, the idea of creating the power to cap credit interest rates will also be debated.

The Consumer Minister has stated that whatever can be done to make the consumer better informed and protected should be considered a good measure by consumers and lenders.

Spokespeople for Treasury said that the measures need to be taken in order to put a stop to bad and unstable lending practices.

Expectedly, Finance and Lending officials warned that there has been a lot of finance reform already and that the government should take care not to go so far as to create unintended consequences.

Nonetheless, it appears that the government will press forward with proposals in 2011.

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