the wording of the Bill
Prohibition of excessive fees or charges on consumers
(1) In any agreement regulated under the Consumer Credit Act 1974 or
any contract where one of the parties is a consumer it shall be unlawful
to impose a charge, fee or series of charges and fees for a consumer’s
default or failure to do something under that contract which is greater
than 2.5% of the actual value of the default or failure.
(2) In any contract for the provision of banking services regulated under
the Consumer Credit Act 1974 where a consumer exceeds or attempts
to exceed their agreed overdraft
limit or funds available, it shall be
unlawful for the provider of that contract to impose a charge, fee or
series of charges or fees in excess of 2.5% of the actual value of the
sum the consumer exceeds or attempts to exceed their agreed overdraft
limit or funds available by.
(3) In this Act, “consumer” means any natural person who, in contracts
covered by this Act, is acting for purposes which are outside his or her trade, business or profession.
Prevention of Excessive Charges Bill
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