Consumer Credit and Debt Management

Susan Elan Jones Excerpts

Thursday 3rd February 2011 Commons Chamber

[Susan Elan Jones (Clwyd South) (Lab)]

I pay tribute to my hon. Friend the Member for Walthamstow (Stella Creasy) for her sterling and tireless work. I also pay tribute to the cross-party support for her motion and the widespread support from groups that I do not believe have ever spoken to each other before, which shows the strength of feeling.

I am speaking today because of a constituent on income support who went to BrightHouse and was told it was fine for them to buy any item, however expensive it was and whatever the rates they would have to pay back. I am here for the couple with children who lost their house through redundancy. As well as very large mortgage-related debts, they must pay 10 other debts, including five from credit cards, all of which are spiralling out of control, to a total of £37,000. That is the tip of the iceberg in just one constituency. Citizens Advice informs me that in my constituency—just one constituency in one part of the country—it is dealing with work relating to debts in excess of £2 million. That cannot be right, which is why I believe we have such a consensus.

Just before Christmas, I received a nice, handwritten card in the flat that I rent in Vauxhall. The nice person who signed it told me that I could get £300 immediately. The only problem was that the annual percentage rate was 272%, which would mean that I would have to repay £546. Six companies control 90% of that market in the UK. That is scandalous. New Members received £4,000 loans for office items. What would they think about paying back £7,280? Perhaps I should not have said that quite so loudly—people writing about this debate might think that it is an excellent idea. Seriously, however, that is the problem facing the poorest communities in our country today.

The hon. Member for Thurrock (Jackie Doyle-Price) compared prices between an electronics supplier and BrightHouse. In Argos it is possible to buy a 60 cm double oven for just under £280, but the total after interest for the same item in BrightHouse is almost £590. That is nonsense—it is immoral and it must be stopped.

I should like to deal briefly with credit rates, which hon. Members have mentioned. Some say that if we act, there is a possibility that people might go elsewhere to access credit. I understand that, but I cannot see too many of my constituents in north Wales heading to Manchester airport to take the next flight to New York on the off chance that they can get cheaper credit there.

The movement for action is growing globally, including in this country. It is tremendous that we are seeing widespread, cross-party support, and support throughout business and civic society. I commend the motion and hope it wins support. I also hope the Government put behind them whatever qualms they may have had, because this matters in our constituencies, whatever parties we represent, and whatever part of the country we come from. The motion will make a difference to the poorest members of our society. It is right and moral, and we should take action.

[Mr Deputy Speaker (Mr Nigel Evans)]

Thank you for your brevity.