The move by the Government to withdraw the measures in the Financial Services Bill that would make it easier for consumers to seek collective redress against financial services firms, has been criticised by Which?.

Lord Myners has given notice that he will oppose Clause 18 – 25 of the Financial Service Bill standing part of the Bill. As a result, the measures that would have allowed consumers to pursue collective actions against companies that mis-sold to consumers will not become law.

Which? chief executive Peter Vicary-Smith said: “Collective redress is a potentially powerful weapon for consumers against the systemic mis-selling of financial products and would prove a real deterrent for firms engaging in unscrupulous sales practices.