High-cost Credit

Lindsay Hoyle Excerpts

Thursday 5th September 2013 Commons Chamber

[Ian Lavery (Wansbeck) (Lab)]

Does the hon. Gentleman agree that there should be a cooling-off period? The problem seems to be that many people who are desperate for finance can get hold of £500 on the internet before they have even put down their laptops and arrived at the hole in the wall. If there were a cooling-off period of, say—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Interventions must be short. As the hon. Gentleman knows, the debate on the north-east will follow this one, and his intervention has eaten into the time for it by giving the hon. Member for Tiverton and Honiton (Neil Parish) an extra minute.

[Neil Parish]

The hon. Member for Wansbeck (Ian Lavery) has raised a good point. There are laws requiring a cooling-off period when, for instance, people buy shares in holiday accommodation, but that does not apply to loans of this kind.

There is a great deal that we can do. We must help people to obtain credit, but we must also help them to obtain advice. I agreed with much of what was said by my hon. Friend the Member for Hexham (Guy Opperman), but I agreed particularly with what he said about community banks. We will not be able to cure everything by means of credit unions, however good they are and however important the part that they play may be. I agree wholeheartedly with the Archbishop of Canterbury on one point: we need to be able to compete the payday loan companies out of business.

We have had an extremely good debate, which has not been vastly political. I do not think that any Government has come out of this smelling of roses. We must do something about the problem, and we must do it on a cross-party basis, because at the end of the day, we want to help our constituents. We want to help them to get to the end of the week, or the end of the month, but we do not want to land them in greater debt and greater problems than they had before taking out their loans.

I am certain that Ministers are listening to what is being said, and I look forward to the summing up of the debate. It has been made clear this afternoon that we are hugely concerned about the interest rates and other penalties that are being levied by payday loan companies, and we look forward to hearing what the Government are going to do about it.