Payday Loans

Lord Mackay of Clashfern Excerpts

Tuesday 10th January 2012 Lords Chamber

[Baroness Wilcox]

As the noble Baroness knows, a great deal of talk is going on with the CABs regarding the possible new range of duties that they will be delivering in the high street, which is, as she said, where people are and want to be. They do not necessarily want to join a credit union. They can go to other places for free debt advice but, inevitably, people need this money at the last minute for reasons that are very important to them. They are not going to seek advice, but they will need to know where it is when they need it. What we would like to do, and what we are pushing for in the industry, is ensure that before that money is loaned such companies make sure that people understand exactly how much money they will have to repay. I will take up any suggestions that the noble Baroness may have.

[Lord Mackay of Clashfern]

Is not the simple answer to require those who lend money to tell people the exact cost of repaying the amount that has been borrowed and the time over which it has been borrowed?

[Baroness Wilcox]

My noble and learned friend is exactly right, and that is what came out of the consumer credit review. We are working with the industry and consumer groups to ensure that that is the information that people get immediately when they need it.