Bill · started in the Commons
Prevention of Excessive Charges Bill
A Bill to prevent excessive charges or fees from being levied on consumers; and for connected purposes
In progress
Current stage: 2nd reading (Commons)
The story so farThe Prevention of Excessive Charges Bill was introduced in the House of Commons on 29 April 2009 by Mr Mohammad Sarwar (Labour). It is now at second reading in the House of Commons. Second reading is the first debate on the overall principle of the bill; if the bill clears it, detailed committee scrutiny follows.
What the bill does
The aim of this Bill is to make provisions which would protect bank customers and other borrowers from excessive charges or fees. The Bill would require that any default charges in a consumer contract with a bank must be 'fair and proportionate'. Specifically, it would limit charges and fees to no more than 2.5 per cent of the actual value of the default or failure per loan or account. This would apply to agreements regulated under the Consumer Credit Act 1974 (loans) and bank account overdrafts. The Bill would apply to the whole of the UK.
Progress through Parliament
- 1st reading Commons 29 Apr 2009
- 2nd reading Commons Current
Source: the official bill page. Last updated 3 Nov 2009.