Ann McKechin
Main Page: Ann McKechin (Labour - Glasgow North)Department Debates - View all Ann McKechin's debates with the Department for Education
(11 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
10. What the outcomes were of his Department’s summit meeting with payday lenders on 1 July 2013; and if he will make a statement.
Ann McKechin (Glasgow North) (Lab)
11. What the outcomes were of his Department’s summit meeting with payday lenders on 1 July 2013; and if he will make a statement.
Jo Swinson
Significant action is being taken. The Office of Fair Trading has referred the industry to the Competition Commission because of widespread non-compliance. It is taking its own enforcement action, which has already resulted in a third of the lenders that have responded so far—the rest are due to do so this month—leaving the market altogether as a result of the tough action being taken. We have given the FCA stronger powers to enable it to ban products, impose unlimited fines and order money to be paid back to consumers who have been ripped off. That is a pretty comprehensive package of action to clamp down on this unscrupulous and irresponsible lending behaviour.
Ann McKechin
If other jurisdictions, such as Florida, already have effective real-time recording systems that stop borrowers accumulating unpayable debts, why cannot we have such a system here, now?
Jo Swinson
Such systems rely on the industry to be able to update them. The industry is looking at and working on that. We have credit reference agencies, which work well in many of the credit markets, but the real-time issue that the hon. Lady raises is a genuine one and more difficult to set up than the systems in place. We are encouraging the industry to address that, because it will help to improve affordability assessments.