ROGUE LENDERS MUST BE STARVED OUT OF THE MARKET: CABLE

3.23.37pm UTC (GMT +0000) Tue 13th May 2003

Responding to the National Consumer Council's request for consumer protection against rogue lenders, Vincent Cable MP, Liberal Democrat Trade & Industry Shadow Secretary, called for the Government to act now to protect vulnerable consumers who are being ripped off by massive interest rates on loans.

"It is always the people on low income, regularly denied access to legal and reputable facilities, who are forced to approach back street wolves for loans."

"While the Government is moving at a snail's pace, vulnerable people are being ripped off by rogue lenders.

"With the high level of personal debt in the UK already making the economy fragile, it is crucial that the Government acts quickly by introducing tougher penalties for those guilty of bad practice."

"High street banks also have a role to play here. They should ensure that consumers on all levels of income have access to basic banking services. This act would go some way to starving rogue lenders out of the market.

ENDS

Notes for Editors:

In response to the Department of Trade and Industry's (DTI) review of the thirty year old Consumer Credit Act, NCC's report outlines clear recommendations for Government to follow to help people currently being put at risk. These include:

* Meaningful fines and a points system, similar to the driving

licence scheme, so a trader who gets pulled up more than three times can automatically lose their licence;