Oral question asked in the House of Lords, by Bishop of Salisbury (Bishops (affiliation)). It was answered on Wednesday, 14 December 2005.

Interest Charges: Store Cards

Question: My Lords, I wonder whether the Minister remembers when banks issued cards with the legend, "Access takes the waiting out of wanting"? Is he prepared to continue to justify leading some of the more vulnerable people in our society into overspending when there are means, which would not wholly reduce the unbridled competition that he so clearly desires, that could be put into effect?

Answer: My Lords, it is important that lenders behave responsibly when lending. Action has been taken to make certain that that happens. APACS is looking at ways to ensure that lenders adhere to the banking code and its best practice guidelines stop lenders lending to vulnerable people by sharing data and so on. That seems to be the way that we should deal with this issue, rather than trying to specify all the details on lending, because once one does that, one has to specify everything. If one hole is stopped up by, say, putting a cap on interest, it simply leads to action in other areas and that would not only stifle competition but would also lead to incredible bureaucracy.

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