Debt Advice Services Debate
Full Debate: Read Full DebateDepartment: Department for International Development
Lord Forsyth of Drumlean
Main Page: Lord Forsyth of Drumlean (Conservative - Life peer)Department Debates - View all Lord Forsyth of Drumlean's debates with the Department for International Development
(6 years, 2 months ago)
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Lord Bates
We have provided significant additional funding to the credit unions. Wonga, which is in administration at present, is not a matter directly for government. The Financial Conduct Authority has issued advice that those who have loans with Wonga should continue to service those debts to avoid getting into further potential debt in the future.
Lord Forsyth of Drumlean (Con)
Perhaps I should declare an interest as chairman of a bank. Is my noble friend surprised that debt problems are growing when our daytime television is filled with ads for gambling and loans at exorbitant APRs?
Lord Bates
Certainly these are causes for concern. That is why we had a gambling review and followed the recommendation to introduce a £2 limit on fixed-odds betting terminals. That is why we put a cap on payday loans, abolished surcharges on credit and debit cards, and why we are currently undertaking a review through the FCA into high-cost credit. All those things are necessary for the reasons suggested by my noble friend.