Question to the HM Treasury:

To ask Her Majesty’s Government what action are they taking to ensure openness regarding fees in the financial services industry.

The Government is clear that consumers must be able to access clear and transparent information about the charges that may apply to financial services products easily.

In relation to current accounts, the Government reached an agreement in November 2011 with the major providers to enable customers to manage their account and to take action to avoid bank charges. Under the agreement, all customers have the option to receive text alerts where their balance falls below a certain level; are made aware by what time of day they can pay in funds in order to avoid going overdrawn; and, benefit from a buffer zone to ensure that they are not charged for going over their limit by a small amount.

The Government has also legislated to require the Financial Conduct Authority to cap the cost of payday loans, including fees and charges. The Financial Conduct Authority (FCA) created rules to effect the cap on 11 November.

More generally, the FCA requires firms to be clear, fair and not misleading when giving information to consumers. The FCA is currently considering how key information about a product or service should best be communicated to consumers. This includes the fees and charges associated with financial products. The FCA will publish a discussion paper on this issue in the near future.