MSE News: Labour manifesto to target unfair charges

They have been in power for 12 years. Wonder why they are saying they will do something now? I find it so cynical it really does annoy me.

Why is it a rip-off when the fees are plain to see before you sign up for an account. If you didn't like them then you could always have gone somewhere else.

Quite strange that. The OFT are due to give another update on Unfair terms in 2012 which is just a general follow up.
Consumer Credit Directive coming into force this year and implemented in full by 2011 which has already had consultation.


With respect to the article this is the text of what it says:

"In the post-crisis economy, we will fight for consumers and stand up to vested interests that treat people unfairly, whether in the private or public sector. We want a fair deal for all.

The Post Office has an invaluable role to play in our communities and in serving local businesses. To promote trusted and accessible banking, we will transform the Post Office into a People’s Bank offering a full range of competitive, affordable products. This will help sustain the network and boost competition in banking. The universal postal service delivered by the Royal Mail connects and binds us together as a country. We are firmly committed to the 28 million homes and businesses across the country receiving mail six days a week, with the promise that one price goes everywhere. The Royal Mail and its staff are taking welcome and needed steps to modernise work practices.
For the future, continuing modernisation and investment will be needed by the Royal Mail in the public sector.

We will introduce a universal service obligation on retail banks, so that all consumers with a valid address have a legal right to a basic bank account, and a right to redress if this is refused. Banks will have to publicly report on the extent to which they are under-serving communities. And we will introduce a new levy on the banks to help fund a step-change in the scale of affordable lending by third-sector organisations, including a new partnership with the Post Office, offering an alternative to loan sharks and high-cost doorstep lending.

Over the lifetime of the next Parliament, as more affordable lending becomes available, we will clamp down on the interest rates and other fees charged by instant loan companies and payday or doorstep lenders, tackling the very high cost lending that hits low-income communities hardest. We will introduce a single regulator for consumer finance to restore confidence and trust with responsibility for the supervision of all unsecured lending being passed to the Financial Services Authority. And new rules governing how financial products are sold will be introduced with a crackdown on unfair terms in contracts.

Finally, we will seek to promote competition in high-street banking by introducing portable bank account and cash ISA numbers that stimulate switching where consumers are dissatisfied, along with consistent, easily understood labelling of financial products."

EDIT: It took me a while to spot the unfair terms bit and didn't the Supreme Court say that politicians might want to consider doing this in the judgement from the OFT test case on bank charges?

They are also promising, in their manifesto, not to increase tax rates in the next parliament, just like they promised not to in this parliament.