Credit card cheques to be banned!

Consumer groups want a new ombudsman

Credit card cheques are set to be banned as part of plans for consumer protection due to be unveiled later.

Measures to assist people facing difficulties with debt and at risk from rogue traders during the recession are also expected to be announced.

Figures from the Bank of England show that UK residents owe £233bn on credit cards, overdrafts and other loans.

The government will unveil its plans - to be laid out in a White Paper - at 0930 BST.

The government could propose action to make lending practices more responsible, with concerns raised about debt levels during the recession.

Research from the price comparison website, Uswitch, suggested one in five people saw their credit card limit increased over the last 12 months without them asking for it.

Consumer groups have also called for more help for consumers to resolve issues with businesses which they believe have ripped them off.

Citizens Advice wants a Consumer Ombudsman who would resolve individuals' complaints and take command of group action by consumers.

BBC NEWS REPORT.