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Lending (Regulation) Bill

Absolutely. I make a habit of never disagreeing with the shadow Chancellor. I am sure that he is right about the issue, and I am happy to confirm that for my hon. Friend. Clause 2 requires anyone selling an unsecured loan to ensure that the borrower is aware that it could be turned into a secured loan by court judgment. The Bill targets the right outcome. Transparency of information is vital so that people understand the exact consequences of their actions. Clause 3 deals with the standard method of calculating interest rates on credit cards. There is undoubtedly a bewildering range of different interest rates and terms, and consumers need help. However, I am not convinced that Whitehall's determining a single methodology would prove practical. Indeed, it could restrict innovation and consumer choice. The Bill needs to be careful: it is one thing to provide for standardisation and transparency, but we would be worried about a narrowly prescriptive measure. The Bill rightly tries to tackle the problem of credit card debt, and we share the promoter's concerns, but we have reservations and believe that the measure has missed an opportunity to deal with financial information. Perhaps the Minister will deal with that important point in his response. We will not oppose the measure, which deserves further parliamentary consideration. We look forward to participating in that process to help those in debt and empower consumers generally.