The Government’s Consumer White Paper, 'A Better Deal for Consumers - Delivering Real Help Now and Change for the Future', published today, sets out a programme of action to promote responsible borrowing and lending, and provides a longer-term framework to enhance and enforce consumer rights in the wider economy.

Measures proposed include:

1. A consultation on reforms to the regulation of credit and store cards, to help guard against people running up credit and store card debts they can't pay off
2. A ban on unsolicited credit card cheques, which can tempt consumers to borrow money they cannot afford
3. A review by the Office of Fair Trading (OFT) of the market for high-cost credit, such as payday loans and doorstep lending
4. The appointment of a new Consumer Advocate, responsible for co-ordinating work to educate consumers and to help them to get their money back when things go wrong
5. Powers for the courts to ban persistent rogue traders; a new national specialist team to tackle scams that con consumers on the internet; new money to tackle rogue traders operating on a large scale; and a pilot scheme giving Trading Standards officers powers to help consumers get their money back
6. A new self-help tool-kit, developed by the Money Advice Trust, and a new debtor's guide from the Insolvency Service to help people in debt to take control of their finances.

The review of the regulation of credit cards and store cards will examine if restrictions should be placed on the raising of interest rates on existing debts; if minimum monthly repayments should be raised to combat debt levels; if the practice of increasing borrowers' credit limits without their prior consent should be banned, and the order in which debts built up on a credit card should be paid off.

In addition, consumers will be able to compare the cost of different credit cards based on the way they intend to use them. The Financial Services Authority's Moneymadeclear website will host a new, impartial comparison table, helping consumers make the right and informed choice for them.

"We are delivering a new approach to consumer credit with a review of the regulation of credit card and store cards. We are imposing requirements on lenders to explain their products and to check creditworthiness before they lend, and revised OFT guidance to tackle irresponsible lending,” said Consumer Minister Kevin Brennan.

"There will also be tougher action against rogue traders and fraudsters who look for ways to fleece consumers out of their hard-earned cash, and a new emphasis on consumer rights spearheaded by the Consumer Advocate."

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