The way borrowers repay debts is to be overhauled, the Government announced this week. Changes aim to give borrowers a better deal — but will the measures really help you? Lauren Thompson gives her verdict . . .

Overdrafts
From March 2012, current account customers can opt to receive a text message or email alerting them when they are about to dip into an unauthorised overdraft. And from March 2013, banks should ensure accounts have a buffer, so customers are not penalised for going a few pounds into the red.

They should also be made aware of a grace period, giving them time to put money back into their overdrawn account to avoid a penalty. And they will be sent an annual statement outlining the total amount of charges they have paid to their bank.

Verdict: Little that will make a real difference. Unauthorised overdrafts remain far too expensive, while many banks still have punitive charges, which hit their poorest customers hardest. The state-backed RBS, for example, charges £6 a day for unauthorised overdrafts. Santander charges £25 for a rejected transaction. Most banks already offer text alerts for free, though Barclays charges £2 a month. And some already have overdraft buffers: with HSBC and Lloyds it is £10; and at RBS it’s £6.

Store cards
Pushy sales assistants who offer you a discount at the till if you sign up to a store card will become a thing of the past from March 2012.

Staff will no long receive Commission payments for signing up customers to store cards, and shoppers will be unable to redeem a discount until seven days after taking out the card.....Read more here---> Will proposed new bank rules really keep you out of debt?