Written question asked by Ashok Kumar (Labour) on Monday, 29 November 2004, in the House of Commons. It was due for an answer on Tuesday, 7 December 2004. It was answered by Gerry Sutcliffe (Labour) on Tuesday, 7 December 2004 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: To ask the Secretary of State for Trade and Industry, what plans the Government has to introduce restrictions on hidden charges imposed by secondary lenders which apply when the borrower falls into arrears.

Answer: Dr. Kumar: To ask the Secretary of State for Trade and Industry what plans the Government have to introduce restrictions on hidden charges imposed by secondary lenders which apply when the borrower falls into arrears. [201504] Mr. Sutcliffe: The Consumer Credit (Agreements)(Amendment) Regulations 2004 require that from 31 May 2005 all lenders must provide detail on arrears charges under the heading "Key Information" up front in the credit agreement form. The Consumer Credit (Disclosure of Information) Regulations 2004 also require that, from the same date, these charges are flagged in pre contract information that must be given to the consumer to assist them shop around for the best deals. In addition, as part of the Consumer Credit Bill, we intend to introduce requirements for all lenders to provide annual statements and notices about fees and charges. This will mean that borrowers will be aware of the state of their accounts throughout the life of their loan.

Secondary information

Type: Written question
Reference: 201504; 428 c470W
Session: 2004-05
Subjects: Disclosure of information Consumers Credit agreements Credit Arrears Fees and charges Protection
Link: View this Written question on www.publications.parliament.uk