Oral Answers to Questions

Baroness McIntosh of Pickering Excerpts

Thursday 18th July 2013 Commons Chamber

[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.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

Is this issue not also about the level of household debt—households running into debt and not knowing how to manage a household budget? Much more information should be available to take people away from payday lenders.

[Jo Swinson]

My hon. Friend makes an extremely important point. We are introducing financial education in schools, which is an important development to make sure that people have the tools to make decisions, but it is also important to note that half of the people who take out a payday loan are already showing signs of financial stress. So although we need to tackle the problems of payday lending, we also need to tackle the problems that get people there in the first place, and make sure that they have good access to the free and confidential debt advice available. I encourage anyone in financial difficulty to seek help sooner rather than later.