Question to the HM Treasury:

To ask Her Majesty’s Government what proposals they have for ensuring that customers and retailers are not overcharged for any financial services.

The Government believes that consumers should be treated fairly. Consumers must be able to access clear and transparent information about the charges that may apply to the financial services they use.

The UK already has put in place a robust regulatory regime to protect consumers. The Financial Conduct Authority (FCA) is empowered to act to ensure that financial markets work well so that consumers get a fair deal.

The Government introduced a cap on the cost of payday loans in January. All fees and charges that may be incurred in relation to a payday loan are covered by the cap. The Government has also given the FCA the power to cap the cost of all forms of consumer credit if it deems necessary to protect consumers.

New regulations will come into force in September 2016 to ensure all current account customers will have access to a standardised annual statement of fees and to ensure customers receive a Fee Information Document prior to choosing their bank account.

In April of this year, the Government helped to deliver Midata to enable customers for the first time to compare which bank is best for them based on how they use their personal current account.

On mortgages, the Chancellor announced in Autumn Statement 2014 that the Council of Mortgage Lenders and Which? would work together to improve the transparency of mortgage fees and make it easier for borrowers to choose the best mortgage deals. This project is due to report this summer and the Government expects most of the industry to have made the necessary changes by the end of the year.

The Government is also introducing measures to support retailers. The Interchange Fee Regulation will come into effect later this year and will cap fees which are charged to retailers by their banks for accepting debit and credit cards.