Ann McKechin MP today welcomed the Labour Government’s agreement with the credit and store card industry as good news for local people. 

The agreement means that, in the future, consumers’ most expensive debt – like withdrawing cash on a credit card – will be able to be paid off more quickly, there will be better repayment plans available to customers, a ban on credit limit and rate increases for people at risk of financial difficulty and a right to 60 days to reject interest rate increases. 

Ann McKechin MP said;

“Today’s announcement is an important step forward for local people’s rights in terms of managing their own finances, delivered by a Labour government. It’s estimated that these reforms will save the average credit card user around £224 a year and consumers UK-wide well over £300m a year. This is an important boost to individuals and families coming through the financial downturn.”

Prime Minister Gordon Brown said;

“Step by step, we are reinventing the financial services industry after the global financial crisis and moving the balance of power back towards consumers. These new rights will put an end to the irresponsible lending practices that people have been most concerned about, and help cut the cost of borrowing.“ 

Labour’s consumer Minister Kevin Brennan said;

“This is a big win for consumers and helps to put them back in the driving seat with their finances. When we asked the public what changes they wanted to see we discovered most people did not know the charges worked this way. They thought it was unfair and confusing, and they naturally wanted to pay off their most expensive debts first.

“This is a fair framework of rights and rules that makes sure easy and convenient lending for the majority doesn’t lead to unmanageable debt for the minority who may be in financial difficulty.“