- Wednesday, 14 April 2010More consumers may need
IVA help if the Liberal Democrats proposed fair banking rules and interest rate caps on credit and store cards, revealed on April 9th, ever happen.
According to moneysupermarket.com, the proposals do have some merit, but there may be unforeseen consequences such as the financial exclusion of those with poor credit ratings, who will be unable to access affordable credit.
This could lead consumers to resort to lenders with even higher interest rates, driving them into
bankruptcy and possibly leaving them seeking
IVA help.
Kevin Mountford, head of banking at moneysupermarket.com, said: "The Lib Dems have missed a trick with this consumer manifesto which could have focused more on trying to help the millions of Britons who have been financially excluded by the main banks."
He added that there is already a 'two-tier banking system' where those with poor credit can easily get into debt. He believes it will only get worse if the proposals are implemented.
The Lib Dems also want to stop banks from charging people who go over their overdraft limit and stop bank bonuses to create a fairer society.
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