Consumers Need a Fair Deal in Credit Agreements

12.00.00am UTC (GMT +0000) Thu 3rd Mar 2005

Speaking during today's debate on the Consumer Credit Bill, Gordon Liberal Democrat MP Malcolm Bruce reinforced the need for action to help prevent people falling into debt by the lure of easy credit.

"It's very easy for people to be seduced into a credit agreement which does not fit their financial needs, and the hardship and distress of debt is a common result. We can address this in two ways: by forcing lenders to act more responsibly and by giving people enough information to help them borrow sensibly.

"We need to ensure a fair system of comparability so consumers can calculate the best financial product for their circumstances.

"The Office of Fair Trading could also publish the range of figures which are acceptable for financial products on the market. With an OFT guide consumers will know with certainty whether their loan is reasonable or extortionate.

"More than this, lenders a duty of care when offering credit agreements.

"I want flexibility and choice in the loans market and I don't want to close options out. But the consequences of bad debts are devastating, often leading to misery. Appropriate and responsible lending to informed borrowers, with access to transparent information, would help address the UK's current personal debt problem."