Banks have agreed to make it easier for customers to switch current accounts and to make it clearer what their charges are. Under the changed, proposed by the  Office of Fair Trading, banks must provide monthly reports and an annual summary of the actual account charges - this will enable consumers to compare the prices and benefits of other bank accounts and make it easier to switch accounts for a better deal, a bit like car insurance. 

Although the proposed changes on switching direct debits are soon to be made easier is welcome, what is concerning is that we will all have to wait for up to two years for the changes to be introduced. It is estimated that this will not come fully into operation until 2011. So don't get too excited.
 
I am also concerned that the issue regarding unauthorised overdraft charges has still not been settled - this is because the legal battle between the banks and the OFT continues, with banks appealing earlier Court decisions to allow the OFT to decide whether charges are fair or not.

Bank charges need to be made clear. One hopes this will be clarified once the House of Lords (which is currently considering the issue) announces its decision.

If we had had this proposal some 15 years ago then many customers would not have fallen to the trap of hidden and obscene charges for going overdrawn.
 
These latest proposals are a move in the right direction but it is annoying that it has taken this long for the banks to do something positive.

It's common sense that a good working business needs to demonstrate transparency and be up front with costs -  which begs the question: "why have banks been allowed to get away with this deception for so long?"
 
Consumers have had enough of underhand and devious methods, especially where banks are involved. These new measures should help people plan their finances and give then the opportunity to walk away from a bank that is not open and up front.
 
The new changes will also mean that banks will have to work harder to keep a customer - that’s a first, I say with a wry smile.

How to claim bank charges, credit card charges and use 'Financial Hardship' can be found here Bank charges latest news and claim tools.

Citizens Advice Bureaux under pressure from consumers in debt

The CAB offers a valuable service but along with other debt charities they are overwhelmed with enquiries, 9,300 at the last count, EVERY WORKING DAY.

The consumer debt problem in the UK is just too big to be left to those firms described as ‘charities’ to deal with. This has been reconised by the Government which is why the debt service industry in under review, more of this can be found here Government reviews the workings of Debt Management Companies.

Due to the current debt crisis in the UK the fee charging firms have seen a massive increase in demand for their services because the non fee charging firms, of which there are only a few,  are often swamped and can take longer to set up these plans. Debtors need action sooner rather than later and many accept that they have to pay for such a service. There are pros and cons for using either of the fee charging or non fee charging firms.

You can find more on this at the DebtWizard guide to debt management companies.

We don't just have thousands of consumers in serious debt trouble, we have millions, and this is not going to suddenly disappear overnight. The reason for this is that over the past decade or so this country's economy has been fuelled by 1.5 trillion of consumer borrowing. Morally and socially we have been encouraged to spend and pay later through slick marketing and the easy availability of credit and from this we have developed a culture of must have now.

There needs to be a long term agenda to teach and educate individuals on how to manage their finances with the aim of getting them to live within their means, we also need to have a look at the way credit is advertised and bring in legalisation to seriously penalise those that are found guilty of irresponsible lending.

We have some useful links below;

DIY Debt plan

Free BudgetWizard

Helpful organisations

Six option guide to debt problems

Debt solution comparison table