A crackdown on irresponsible lending and scam websites, as well as the creation of a new Consumer Advocate, were outlined this week by the Government as it took a stance to strengthen consumer rights and help households through the recession. But what will the measures in the Consumer White Paper, published on Thursday, mean for you?

How will it affect my credit card borrowing?

Unsolicited credit card cheques will be banned “as soon as possible”, though this is likely to be early next year.

The cheques have been heavily criticised by consumer groups as they start to charge interest rates of up to 30 per cent immediately. There are also handling fees to pay. Credit card companies will only be able to send cheques to customers who specifically request them.

The Government is also considering a ban on raising interest rates on existing debts and outlawing the practice of increasing borrowers’ credit limits without their consent.

It may also require higher minimum repayments on credit cards, to enable payment of the debt within a shorter period of time and with less interest.

Finally, the Government will examine how debt repayments are arranged. Most credit card providers currently pay off a borrower’s cheapest debt first, meaning that the most expensive debts accrue more interest.

If you had a Virgin Money MasterCard, for example, and made a £2,000 balance transfer but then spent £1,000 on the card, you would be charged 0 per cent on the balance transfer and 16.6 per cent on the purchases. Assuming that you paid off £100 a month, you would be charged £179 in interest over the first year.

The Government may force lenders to pay off the most expensive debt first. Firm proposals on all the measures will be published next spring.

What about payday and doorstep loans?

There will be a review of high-cost credit, mainly payday loans (cash advances intended to cover borrowers until their next pay day) and doorstep loans, which typically charge interest rates of 250 per cent.

However, there will be no immediate action. The Office of Fair Trading (OFT) will investigate whether or not the market is competitive enough and publish its report next year. The report is unlikely to result in a cap on rates.

I have been a victim of an online scam. Will the reforms protect me?

Thousands of consumers are ripped off by fake websites and online scams, in which consumers pay for goods, such as event tickets or CDs, that never arrive. Many of the websites continue to trade unchecked.

This year a new team, comprising the police, OFT and Trading Standards, will be established to tackle rogue websites. Victims of online scams will be able to report the website to Consumer Direct (consumerdirect.gov.uk), which will pass on information to the new enforcement team.

What will the new consumer champion do?

The Government plans to appoint a Consumer Advocate next year to become a “high-profile media figure” who will warn people about the latest scams.

He or she will be able to take collective legal action on behalf of a group of consumers to obtain compensation, and may also be able to tackle unfairness in consumer credit agreements, in the same way that the OFT is currently testing the fairness of unauthorised overdraft charges.

The advocate may also be able to help victims of overseas scams to get their money back, but only if enforcement agencies have seized funds from the fraudsters already.

I am struggling to repay my debts. What help is there for me?

An online “self-help tool kit” will go on the Money Advice Trust’s website in the autumn to help borrowers to reach an agreement with creditors. The idea is to allow financially capable consumers, particularly those made redundant recently, to reduce the time spent with a debt adviser from about five hours to 90 minutes.

About four million people are expected to need debt advice this year, but debt charities, such as Citizens Advice and National Debtline, are already working to capacity, so this is designed to make debt advice more efficient and accessible.

The white paper also reiterates that all credit card providers, large banks and utility companies must give 30 days of breathing space if a borrower has approached a debt adviser.

I have a charging order on my home. Will the Government stop me from being repossessed?

Not yet. A charging order secures a credit card or personal loan debt against a property and allows creditors to apply for an “order for sale” to recover the debt by forcing a sale of the property. It means that borrowers could lose their homes as a result of very small debts.

The Government is considering a new minimum level of debt, below which a creditor could not apply for an order of sale. However, this will not be announced until next year.