Don Foster MP

News

Foster welcomes Liberal Democrat clampdown on unexpected bank charges

November 25, 2023 by admin in Liberal Democrats, News

The Coalition Government has announced measures to clamp down on unexpected bank charges following a review of consumer credit and personal insolvency. Don has welcomed the news and released this comment:

We’ve all been there. A direct debit comes out days before pay day and pushes you ever so slightly over your overdraft limit, so you get whacked with a massive penalty fee by your bank. You step into a high street shop and are given the hard sell for a store card, you’re tempted by the discount and end up saddled with a stonking great interest rate you didn’t even realise you were signing up to.

For too long, too much power has been in the hands of banks and big companies and too little information gets to you, the customer.

The Liberal Democrats have long campaigned to give consumers more power, more choice and more information. I’m proud to say that Liberal Democrats in the Coalition Government have now taken action.

The Liberal Democrat business minister Ed Davey has announced that unexpected bank charges and introductory store card offers are a thing of the past.

What’s more, you will now get the option of receiving a text message or email from your bank if you’re close to going into the red.

The announcement follows long discussions and negotiations between the Coalition Government and industry, looking at all aspects of consumer credit and personal insolvency.

The Liberal Democrats fundamentally believe in independence, individual freedom and equality of opportunity. Where we see concentrations of power, whether in the banks, big business or the state, we want to break them up and give that power back to individuals, where it belongs.

For all the lofty ideals, I accept tackling unexpected bank charges might seem small beer compared to fighting to abolish slavery or give women the vote, but the same motivation that drove Liberals then drives us now - giving people power and choice.

It’s why Liberal Democrats in the Coalition Government are making sure the Income Tax threshold is raised so that you keep more of your own money, a policy straight from the front page of our manifesto to your back pocket.

It’s why Nick Clegg and Vince Cable fought to ensure that banks are hit with a new tax to the tune of £2.5bn a year.

And it’s why the Coalition Government is reforming the benefits system to make sure that work always pays.

Liberal Democrats in the Coalition Government are tackling big problems and making difficult decisions every day, because we believe in doing the right thing, not the easy thing.

We know that we can’t give people the power and freedom we want unless we get the economy growing and jobs created. We inherited a mess from Labour but we are fighting every day to turn it round.

But amid all the economic doom and gloom it is worth remembering there are things the Liberal Democrats are doing to tip the balance back in favour of individuals. Ending unexpected bank charges and introductory store card offers is just one small piece of that puzzle.