The bill, which had its second reading in parliament last Thursday, has been designed to improve the clarity of financial products, such as loans and credit cards, for consumers.

However, according to Nationwide the legislation does not force lenders who advertise ‘typical’ rates of interest to tell all applicants how much they will actually have to pay.

The building society believes that as many as one third of loan and credit card applicants could see different rates of interest levied.

Nationwide stated that it would like the bill to be made clearer for customers, even if the changes slowed its progress, the Financial Times reports.

When the bill is passed, consumers should find it easier to successfully take legal action against a lender.

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