Financial Services (Banking Reform) Bill

Bob Stewart Excerpts

Wednesday 11th December 2013 Commons Chamber

[Sajid Javid]

If the hon. Lady will allow me, I will answer her questions when I consider the amendment she mentions.

There is a growing evidence base, including lessons from other countries, that a cap on costs is the right way forward for consumers. That is why the Government tabled an amendment in the other place to require the FCA to impose a cap on the cost of high-cost credit and short-term loans—not just an interest rate cap but a cap on all fees and charges, including default charges and roll-overs.

[Bob Stewart (Beckenham) (Con)]

Does my hon. Friend have any idea what level of cap there might be on such charges?

[Sajid Javid]

My hon. Friend asks a reasonable question that I am sure many Members would be concerned about. The cap should be set by the FCA at a level designed to protect consumers. I hope that when I go on to talk about the process, that will give him a bit more definition regarding his concerns.