Debt Advice Services

Lord Anderson of Swansea Excerpts

Thursday 6th September 2018 Lords Chamber

[Lord Bates]

We are taking some steps on that. The Financial Guidance and Claims Act, which my noble friend Lord Young took through this House, introduced the single financial guidance body. We stress that we are increasing the funding that goes into making financial advice available to people to prevent them getting into debt. We have taken action against illegal money lending by imposing a levy on the consumer credit industry; it must fund the illegal lending teams that clamp down on loan sharks. A lot needs to be done, but we need constant vigilance in this area because of the problems that we have seen arise in the past.

[Lord Anderson of Swansea (Lab)]

The Minister spoke of the increased support from public funds for debt counselling agencies. Is he satisfied with the contribution from those companies that press individuals and vulnerable households to take out more debt?

[Lord Bates]

They are of course regulated through the Financial Conduct Authority, which is one reason why a review into high-cost credit is currently under way, looking particularly at the rent-to-buy model, which I know is of particular concern to many people. It recognises that that is an important element of it, and we are taking action on that.