Extract from Hansard
Quote:
Banks (Penalty Charges)
5. Mr. Alistair Carmichael (Orkney and Shetland) (LD): If he will take steps to limit the levels of penalty charges imposed by banks on their customers; and if he will make a statement. [306846]
The Exchequer Secretary to the Treasury (Sarah McCarthy-Fry): The Government announced in the pre-Budget report on 9 December that they would work with consumer groups, the Office of Fair Trading and the banks to agree a new framework that will make bank charges fairer, simpler and more transparent. The Government will take action to deliver change if a voluntary approach does not result in a fair outcome for consumers.
Mr. Carmichael: I thank the Minister for that very helpful reply. She was given a fairly broad hint by the judgment of Lord Walker in the case of Abbey National and others, when he said that his decision was
and that
What can she do to review the operation of section 140 of the Consumer Credit Act 1974, which requires fairness in the contractual relationship between banks and customers?
15 Dec 2009 : Column 788
Sarah McCarthy-Fry: The Office of Fair Trading is still considering that judgment in detail, and on 22 December it intends to make an announcement about what further action will be taken. Our position is very clear: we want to see a fairer and more transparent system of charges, and we are working very closely with the OFT to achieve that.
Quote:
Banks (Penalty Charges)
5. Mr. Alistair Carmichael (Orkney and Shetland) (LD): If he will take steps to limit the levels of penalty charges imposed by banks on their customers; and if he will make a statement. [306846]
The Exchequer Secretary to the Treasury (Sarah McCarthy-Fry): The Government announced in the pre-Budget report on 9 December that they would work with consumer groups, the Office of Fair Trading and the banks to agree a new framework that will make bank charges fairer, simpler and more transparent. The Government will take action to deliver change if a voluntary approach does not result in a fair outcome for consumers.
Mr. Carmichael: I thank the Minister for that very helpful reply. She was given a fairly broad hint by the judgment of Lord Walker in the case of Abbey National and others, when he said that his decision was
- "not the end of the matter,"
and that
- "Ministers and Parliament may wish to consider the matter further."
What can she do to review the operation of section 140 of the Consumer Credit Act 1974, which requires fairness in the contractual relationship between banks and customers?
15 Dec 2009 : Column 788
Sarah McCarthy-Fry: The Office of Fair Trading is still considering that judgment in detail, and on 22 December it intends to make an announcement about what further action will be taken. Our position is very clear: we want to see a fairer and more transparent system of charges, and we are working very closely with the OFT to achieve that.
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