Consumer Credit

Baroness Coussins Excerpts

Thursday 3rd February 2011 Lords Chamber

[Baroness Wilcox]

My Lords, there are enormous worries surrounding such debt. This is why the consumer credit and personal insolvency review is taking place. I am sure that the review would be open to hearing any evidence that the noble Lord might like to give. However, we cannot answer any questions now, until just before the Budget, so that will be in about April.

[Baroness Coussins]

Is the Minister aware of the independent research by Nottingham University, which forecasts that an extra 200,000 people will need help with their debts this year? Given the end of the Financial Inclusion Fund, and the reports that we have heard just this morning about the cuts to Citizens Advice, what help can the Government provide to ensure that the most vulnerable people get help and are kept out of the hands of loan sharks? I declare an interest as the president of the Money Advice Trust charity.

[Baroness Wilcox]

This Government, like the previous Government, are constantly trying to find ways to help people get the best possible information to make sure that the decisions they make lead to debts that they can fulfil. It is very difficult. This is why another review is taking place. We are looking yet again to see what we can do so that people do not have to go to loan sharks. However, I am worried about putting a cap on any of the very, very high interest rate products. At least we know that when people get into trouble they can come to us for help. Countries such as Germany and France capped at 25 per cent years ago. The problem is that there is no access for the very poorest people who need to borrow. It is important that they have access to some facility.