Oral question asked in the House of Lords, by Baroness Miller of Hendon (Conservative). It was answered on Wednesday, 24 October 2007.

Debt: Consumer Credit

Question: My Lords, I thank the Minister for that Answer. Having said that, I was worried at first that I had the wrong supplementary. I was going to ask whether he remembered the Consumer Credit Act 2006, but of course he was not in the House at the time we debated it. Is the Minister aware—I am sure that he is—that I proposed a very modest amendment that would have required the lender to ask the borrower if he had the means to meet the commitment? The then Minister replied that it was certainly not necessary to have that on the face of the Bill. Given the indebtedness of individuals throughout the country and the fact that I never like to say I was right—nevertheless I am going to say that I was right—could the Minister please now tell the House what they are prepared to do to remedy the situation?

Answer: My Lords, I am grateful to the noble Baroness for indulging me and apologise for my incompetence at the beginning of my Answer. The Consumer Credit Act 2006 does contain important new safeguards for consumers. In particular, it will make it easier for the Office of Fair Trading to take action against lenders who do not take a responsible attitude to lending when considering who is fit to hold a consumer credit licence. But it is not just about addressing behaviour through legislation. Financial education, particularly of the young, has an equally important role in ensuring that a responsible attitude is taken to borrowing as well as lending.

Secondary information

Type: Oral question
Reference: 695 c1071,1201-2
Session: 2006-07
Oral question type: 1st Supplementary
Chamber / Committee: House of Lords chamber
Notes: Question originally incomplete in Daily Part due to a technical problem. Full question and answer reprinted as a correction on 25 October 2007 at 695 c1201-2.
Subjects: Consumers Debts Credit Financial services Protection
Link: View this Oral question on www.publications.parliament.uk