Whilst the Phase 2 reform consultation process started in the Green Paper continues, the Government has already committed itself to reform in two areas:

• credit cards: the Government has committed to credit card reforms in its Fairer, Simpler Banking policy which includes proposals that consumers are not charged over-limit fees unless they specifically agree that their account can go over the limit, credit card providers must allocate repayments to higher interest debts first and interest charges are applied consistently under an industry-agreed standard, including when interest starts to accrue and on what balances.
• reverse mortgages: there will be legislation by mid 2012 to give statutory protection against negative equity and require greater disclosure of features and fees (see Delivering for Seniors policy).