European Parliament backing for end to unfair bank charges

Arlene McCarthy

Euro MPs today (Thursday 20 January 2011) backed key amendments to a new law on Consumer Rights that would end the scandal of unfair bank charges and other abuses of consumers.

Former Chair of the Consumer Protection Committee and Consumer Champion, Arlene McCarthy MEP submitted the amendments that were taken on today by the Parliament’s Legal Affairs Committee, to banish unfair charges and sharp practices, such as car rental rip-offs, and to give more strength to consumers’ rights to return faulty goods.

Ms McCarthy said: “For too long banks have got away with unfair and disproportionate charges for consumers who go a little over their overdraft limit."

"The British courts have already called these charges unfair but said they cannot act without a change in European law. I welcome today's backing for my amendments that will ensure fines must be fair, just like any other conditions hidden in the small print."

Hidden costs have been put on a so-called ‘grey list’ of practices that should be deemed unfair, and increased consumer’s rights when returning faulty goods.

Ms. McCarthy said: “We have all experienced those hidden extras in a contract that we didn’t anticipate when we purchased a good or service. I have had a number of constituents write to me directly about such charges, particularly related to car hire.”

“My amendments will ensure that consumers don’t have to fear being ripped off. I am sure that most reputable business will agree that for them confident consumers who feel secure in their purchases are better for business.”