Government Action on Debt Insufficient - Goldsworthy

1.07.09pm BST (GMT +0100) Wed 16th Aug 2006

Commenting on the Government's Over-Indebtedness Report published today, Liberal Democrat Shadow Chief Secretary to the Treasury, Julia Goldsworthy MP said: "Releasing annual reports with vague targets is simply not sufficient to tackle our spiralling personal debt crisis.

"High street banks are reporting escalating levels of bad debts, the number of personal bankruptcies is rising and there was a record number of insolvencies this spring.

"The Government is only belatedly recognising the seriousness of the situation and even now many of their plans are limited and voluntary.

"Whilst increasing financial awareness is key to addressing those people who fall into serious debt, the Government seems unwilling to similarly tackle the irresponsible behaviour of some lenders.

"Unfair bank charges and lenders who raise credit limits and extend overdrafts without prior instruction from the consumer must be stopped.

"Although our calls for more financial education are slowly being implemented, there should be greater focus on tackling this problem before it occurs. A genuinely independent financial advice network should be established to help people before financial hardship takes hold."

ENDS

Notes to Editors

1. In June, Liberal Democrat Shadow Chancellor, Vince Cable MP and Liberal Democrat Shadow Chief Secretary to the Treasury, Julia Goldsworthy MP, hosted a round table discussion with debt experts and industry representatives on the spiralling problem of personal debt.

2. The Liberal Democrat Action Plan on personal debt can be found at:

<http://www.libdems.org.uk/media/documents/policies/Liberal Democrat report on personal debt.pdf>