Evasive Credit Card Industry In Denial

11.30.41am UTC (GMT +0000) Thu 16th Oct 2003

Vincent Cable MP, Liberal Democrat Shadow Chancellor

The Credit Card Industry has responded to the reports of record levels of debt and lending by commissioning an independent assessment of all recent reports, which the credit card trade association APACS claimed are 'subjective' and 'contain inaccuracies'.

Vincent Cable MP, Liberal Democrat Shadow Chancellor, criticised APACS statement as "evasive and disingenuous". Dr. Cable said: "The credit card industry is in a state of denial and trying to pass the whole buck for the debt time-bomb to other lenders."

"The brutal truth is that British households are more highly indebted in relation to income than at any time in modern history. As the Governor of the Bank of England suggested yesterday, those who are in debt up to their ears, face higher interest rates for years to come."

"Of course mortgages and equity release are large sources of credit expansion, but the credit card companies cannot escape responsibility for their part in the boom. We all get the junk mail circulars offering us an easy way to get out of a debt hole with a loan or a balance transfer."

"The main credit providers must review their promotions to families and students, who cannot afford to get into long term hock. If the credit industry can't rein itself in, the FSA and the Government must crack down on the irresponsible lenders who promote unsustainable debt."