UK banks face new credit rules

22 November 2011

Banks in the UK are set to have to abide by new regulations designed to enhance transparency for consumers in the personal finance industry.

The government has announced it is to apply rules to all full-facility current accounts offered by financiers in Britain relating to matters such as overdraft fees, interest rate caps on credit cards and introductory discounts when taking out store cards.

Under the terms of these regulations, lenders will be expected to make fees attached to overdrafts clearer and more easily understandable.

Meanwhile, customers are set to have the option of receiving an alert when their balance is so low they may have to pay a charge.

All these rules will come into effect by March 2013 at the latest and Mark Hoban, financial secretary to the Treasury and MP for Fareham, believes they represent an important step forward.

"The changes made as part of this review will empower consumers to make the right decisions for them and encourage responsible lending practices," he noted.

By Gary Cooper

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