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Lending (Regulation) Bill

My hon. Friend is absolutely correct. People tend to escalate into levels of debt. Not everyone goes out, has one massive splurge of purchasing items and winds up in debt they cannot afford. The provisions dealing with unsecured loans in clause 2 are there because it is important that individuals who are taking out loans recognise, if they are home owners, that there is a potential for court action under the Charging Orders Act 1979, which may result in their ending up in court and thereafter having to sell their property to make up for debts that have become unaffordable. The courts in England and Wales in 2007 showed a tenfold increase since 2000—97,000 charging orders were made during that period. The method of calculating interest rates is a complex issue that confuses most consumers. I would dearly like something to be done through this Bill to standardise that process.