CONSUMER CREDIT: GOVERNMENT LETHARGY COSTING CONSUMER DEARLY

12.00.00am BST (GMT +0100) Wed 9th Jul 2003

The Government must act promptly to reign in lenders exerting unacceptable pressure on vulnerable consumers.

Responding to the publication of the House of Commons Public Accounts Committee's report on the Office of Fair Trading and Consumer Credit, Vince Cable MP, Liberal Democrat Shadow DTI Secretary, said: "The Government The Government's inexcusable lethargy in revising consumer credit laws has hamstrung the Office of Fair Trading and is forcing the low income consumer into the web of exploitation spun by backstreet lenders."

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

"Much more rigorous licensing requirements for lenders must be introduced to stop the unacceptable practice of issuing credit licences to people with previous criminal convictions."

"Banks also have a role to play here. They should make sure that consumers on all levels of income have access to basic banking services without taking on unsupportable debt."

ENDS - Notes for Editors

The House of Commons Committee of Public Accounts published its report today on "The Office of Fair Trading: progress in protecting consumers' interests" (HC 546)