Consumer Credit

Lord Sugar Excerpts

Thursday 3rd February 2011 Lords Chamber

[Baroness Wilcox]

This Government, like the previous Government, are constantly trying to find ways to help people get the best possible information to make sure that the decisions they make lead to debts that they can fulfil. It is very difficult. This is why another review is taking place. We are looking yet again to see what we can do so that people do not have to go to loan sharks. However, I am worried about putting a cap on any of the very, very high interest rate products. At least we know that when people get into trouble they can come to us for help. Countries such as Germany and France capped at 25 per cent years ago. The problem is that there is no access for the very poorest people who need to borrow. It is important that they have access to some facility.

[Lord Sugar]

My Lords, the noble Baroness and I have spoken about this subject once before across the Floor and I reiterate my question about the misleading advertising by credit card companies and loan organisations. It is about time that the Advertising Standards Authority imposed strict regulations about the prominence of warnings in respect of interest payable in those adverts so that they are approximately the same size as the headlines trying to lure the consumers in. Will the Minister, once and for all, take this matter up with the Advertising Standards Authority?

[Baroness Wilcox]

If the Advertising Standards Authority was answering instead of me, it would say that it is complying with everything it should be doing. However, the question the noble Lord, Lord Sugar, asks demonstrates that there is continuing concern about this. I will of course take this on board and reflect again upon what the noble Lord has said and see if there is anything I can do to help things along.