BANKS TO BLAME FOR RISE IN BAD DEBTS - CABLE

12.00.00am BST (GMT +0100) Wed 2nd Aug 2006

Responding to the announcement that Lloyds TSB has increased provisions to cover bad debts in line with other banks, Liberal Democrat Shadow Chancellor, Vince Cable MP said: "The irresponsible behaviour on the part of lenders and consumers over the last few years is now starting to show through in the bad debts that banks have to write off.

"Banks must share some of the blame for rising insolvencies and must act more responsibly in the future.

"While some individuals may have acted recklessly, banks are also to blame for increasing credit limits without a customer request and for bombarding individuals with unsolicited mailings.

"Personal bankruptcies are rising very rapidly now, and with interest rates likely to rise in the future and soaring energy bills, households are likely to increasingly feel the pinch."