Financial Services (Unfair Terms in Consumer Contracts) Bill

Key Points

• Extends fairness checks to ancillary pricing terms in personal financial services contracts (not just the main terms).
• Creates a framework for regulators to assess and challenge pricing terms that might be unfair.
• Aims to protect consumers by ensuring pricing terms are fair and transparent across financial products such as bank accounts, loans, insurance and investments.
• Encourages clear disclosure of fees, charges and penalties and appropriate remedies for unfair terms.
• Includes provisions for connected purposes to ensure coherent scope and implementation.

Progress

The Bill is currently at the 2nd Reading in the Commons. If it progresses, it will move to Committee Stage for detailed examination, then to Report and Third Reading before moving to the Lords.