Credit Agreements Under Review

• News
• Published: 14 Jul 2010 in Money and Loans

Ministers have announced a review of rules governing credit agreements in a bid to ensure consumers are getting a fair deal. 

Officials will examine how credit cards, loans and other products are sold, and whether customers fully understand what they are signing up for. 

The review will also ask whether amending regulation would help lenders to cut costs and boost competition in the sector. 

Other issues that will be examined include the current insolvency regime, asking whether people unable to keep up with their payments are treated fairly, and problems that can arise during the lifetime of loans. 

The review will take evidence on what is currently working well in the system, and which areas could benefit from intervention. It is expected to lead to a consultation on specific proposals later this year or early next year. 

Consumer affairs minister Edward Davey said: "This is an opportunity not only to improve the safeguards on consumer credit products, where this is necessary. It's also a chance to cut unnecessary regulatory burdens, which increase costs and stifle competition."