NEWS...
Warning for banks on charges
The government is to take action if the voluntary measures introduced by lenders fail.
In the Pre-Budget Review, the government outlined its approach. It will work with consumer groups, the OFT and banks to agree a fairer framework. Indeed, in a statement it went further, explaining: "The government will take action to deliver change if a voluntary approach does not result in a fair outcome for consumers."
In addition, the government will publish a discussion paper setting out the actions being taken to bring the FSA, OFT and the Financial Ombudsman closer together in their efforts, providing protection to consumers and handling all their complaints.
A further £5m will also be given to Citizens Advice to recruit and train volunteers, while the national Money guidance service will roll out in spring 2010, with the aim of helping one million people within 12 months. At least 25% – and up to £100m – from the dormant accounts scheme will be used to support the service.
The report underlined the government's plans for an independent consumer financial education body to roll out the service and develop a national strategy for increasing the financial capability of the population. This – along with economic wellbeing – will also form part of the secondary curriculum in England from 2011.
It was also revealed that the government will continue the Time to Pay Business Payment Support Scheme, which the Chancellor explained had helped 160,000 businesses defer £4m of tax payments.
Other key items in the PBR
- additional bank payroll tax of 50% on the excess of bonuses over £25,000
- the government will explore ways to encourage the mortgage backed securities market in the UK, with an update in the Budget.
- two-month extension of Credit Guarantee Scheme, subject to approval
- development of a discussion paper on non-bank lending
- the setting up of the Social Investment Wholesale Bank
- preparation of a plan for the establishment of a reclaim fund for money in dormant accounts
- extension for the increase in the threshold for empty property rate relief
- deferral of the increase in the small companies' rate of corporation tax
- continuation of Enterprise Finance Guarantee Scheme for 12 months
- creation of a Growth Capital Fund
Original article courtesy of Credit Today.
