Payday Loans
Debate between Viscount Younger of Leckie and Lord Bishop of Bristol
Viscount Younger of Leckie
The noble Lord is right to raise the issue of continuous payment authorities. The Government have real concerns about the way in which payday lenders can access money from their customers’ bank accounts. We have been pressing the industry on further transparency, and payday lending codes commit lenders to explaining clearly what a CPA is, how it works and how to cancel a CPA.
The Lord Bishop of Bristol
My Lords, given the Government’s racing willingness to import financial expertise from Canada, can my noble friend tell your Lordships’ House whether he has any plans, in the light of the forthcoming payday loan summit, to appraise and learn from the very good, robust and helpful code of practice developed in Canada, which covers such important issues as the non-rollover of loans, no multiple loans, and a responsible policy towards advertising such loans?
Viscount Younger of Leckie
The right reverend Prelate is right to point out that we can learn, as ever, from other countries. In the debate last week, my noble friend Lady Kramer made a valuable point about community development finance institutions. In the UK, the Prime Minister announced the co-operatives consolidation Bill in January 2012, and work on drafting the legislation has begun. The focus should be on credit unions and community-based credit access.