Consumer Debt: OFT should act not patronise

2.00.05pm UTC (GMT +0000) Wed 19th Nov 2003

Vince Cable MP, Liberal Democrat Shadow Chancellor, responding to the launch of a campaign by the Office of Fair Trading to tackle consumer debt, said: "The OFT is right to warn that of the dangers of consumer debt, with the average individual now owing £6,800 (excluding mortgages). But the tone of this campaign is patronising, and is doing nothing to tackle irresponsible lending banks and credit card companies.

"As the regulator, it is the OFT's responsibility to restrain the rising volume of unsolicited credit. They should also be doing more to create a framework where individuals in heavy debt can pay back multiple lenders and utility companies.

"The OFT should be taking action to stamp out intimidation by debt collectors. Unless they conform to a strict code of practice to restrict unreasonable pressure being brought to bear on people with debt problems they should have their licences withdrawn.

"The OFT should spend less time lecturing consumers and more on tackling irresponsible lending."