High-Cost Credit and Debt Management
Debate between Lord Young of Cookham and Lord Archbishop of Canterbury
Lord Young of Cookham
I understand the strong feelings held by many noble Lords on this subject. As I said, in this year’s Budget, a large sum of money was identified to help vulnerable people and enable them to stop these sorts of calls being made. On cold calling by debt management companies and credit companies, there is a code they must abide by. If they break the code they can be fined. Last month, one payday loan company had to repay £34 million in redress because it broke those guidelines.
The Archbishop of Canterbury
My Lords, I declare an interest as patron of Christians Against Poverty, a voluntary organisation based in Bradford dealing with debt management. Does the Minister agree that debt management is an area where there is very significant participation by the not-for-profit voluntary sector? Will he undertake to draw the attention of the FCA and other authorities to the participation of this sector so that it may be listened to and its role receive the recognition that will help people in these problems?
Lord Young of Cookham
I pay tribute to the initiative taken by the most reverend Primate in his setting up of LifeSavers, a joint project by the Church and credit unions which the Government helped to finance. That is helping children develop good financial habits at a young age by setting up saving clubs in primary schools, in partnership with credit unions. I also welcome the initiative of the Church of England in establishing the Just Finance Foundation to develop and implement the most reverend Primate’s vision of creating a fairer and more just financial system. Of course I will take on board the suggestions he made in his question.