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21/10/2004
Charity calls for credit reform to tackle rising debt problems
Citizens Advice has issued a credit warning to consumers after revealing that people approaching the agency with debt problems had risen by three-quarters over the past seven years.
On the back of the figures, the charity has today called for a reform of Britain’s "outdated" consumer credit laws to be included in the Queen’s Speech later this year.
Consumer debt issues seen in bureaux stood at 706,700 in 2003/4 compared with 405,800 in 1996/7 – a rise of 74%.
Consumer debt – which includes credit card debt, store-financed consumer purchases, car loans and personal loans – accounted for two thirds of all debt-related issues seen by bureaux last year.
Bureaux dealt with nearly 1.1 million debt-related issues last year, a figure that also includes housing, utilities and benefits-related debts. But consumer debt is by far the biggest type of debt problem for which people come for help, and it is increasing more than other types of debt problem – by over 35,000 in the last year alone, the agency said.
Citizens Advice Chief Executive David Harker said: “The credit boom of recent years has brought advantages to many of us. But it is clear that others have found it harder to control their borrowing and have ended up in debt.
“Citizens Advice has been warning for a number of years that the problem of personal debt is reaching crisis levels and the fact that the number of consumer debt problems brought to us has risen significantly yet again underlines this warning."
The National Consumer Council (NCC) recently warned that the credit industry had a "long way to go before the credit market works in the best interests of consumers".
Speaking after Tuesday's Treasury Select Committee hearing on credit cards and marketing, Claire Whyley, Deputy Director of Policy said: "Full information sharing between lenders is vital so borrowers already overburdened with debt don’t get tipped over the edge. Banks already share information on their mortgages customers, so why not on credit card customers too? The credit industry must stop dragging its feet."
(gmcg/mb)
On the back of the figures, the charity has today called for a reform of Britain’s "outdated" consumer credit laws to be included in the Queen’s Speech later this year.
Consumer debt issues seen in bureaux stood at 706,700 in 2003/4 compared with 405,800 in 1996/7 – a rise of 74%.
Consumer debt – which includes credit card debt, store-financed consumer purchases, car loans and personal loans – accounted for two thirds of all debt-related issues seen by bureaux last year.
Bureaux dealt with nearly 1.1 million debt-related issues last year, a figure that also includes housing, utilities and benefits-related debts. But consumer debt is by far the biggest type of debt problem for which people come for help, and it is increasing more than other types of debt problem – by over 35,000 in the last year alone, the agency said.
Citizens Advice Chief Executive David Harker said: “The credit boom of recent years has brought advantages to many of us. But it is clear that others have found it harder to control their borrowing and have ended up in debt.
“Citizens Advice has been warning for a number of years that the problem of personal debt is reaching crisis levels and the fact that the number of consumer debt problems brought to us has risen significantly yet again underlines this warning."
The National Consumer Council (NCC) recently warned that the credit industry had a "long way to go before the credit market works in the best interests of consumers".
Speaking after Tuesday's Treasury Select Committee hearing on credit cards and marketing, Claire Whyley, Deputy Director of Policy said: "Full information sharing between lenders is vital so borrowers already overburdened with debt don’t get tipped over the edge. Banks already share information on their mortgages customers, so why not on credit card customers too? The credit industry must stop dragging its feet."
(gmcg/mb)
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Lenders warned over 'irresponsible' credit offers
Credit card companies have been warned that there will be no room for irresponsible lenders in the marketplace of the future. According to the Consumer Minister Gerry Sutcliffe, companies must improve data sharing to help promote "responsible lending" and crack down on those who exploit the most vulnerable borrowers.
04 February 2010
Interest Rates And 'Easing' Held
The Bank of England today held interest rates at 0.5%, with so-called 'quantitative easing' being mainted at £200 billion. The UK officially climbed out of recession last month, following a 0.1% growth in output. "After a substantial fall in output, the UK economy recorded sluggish growth in the final quarter of 2009," the bank said this morning.
Interest Rates And 'Easing' Held
The Bank of England today held interest rates at 0.5%, with so-called 'quantitative easing' being mainted at £200 billion. The UK officially climbed out of recession last month, following a 0.1% growth in output. "After a substantial fall in output, the UK economy recorded sluggish growth in the final quarter of 2009," the bank said this morning.
01 February 2011
New Rights To Benefit Consumers
Consumers should take advantage of new rights aimed at protecting them and encouraging lenders to act more responsibly, Consumer Minister Edward Davey said today as the EU Consumer Credit Directive came into force.
New Rights To Benefit Consumers
Consumers should take advantage of new rights aimed at protecting them and encouraging lenders to act more responsibly, Consumer Minister Edward Davey said today as the EU Consumer Credit Directive came into force.
27 October 2005
‘High cost’ for home credit customers
Customers are generally happy with home credit loans, but they pay a “high price”, the Competition Commission (CC) has warned. The Commission said that there might be a lack of effective competition in the home credit market, where instalments are collected from customers’ homes.
‘High cost’ for home credit customers
Customers are generally happy with home credit loans, but they pay a “high price”, the Competition Commission (CC) has warned. The Commission said that there might be a lack of effective competition in the home credit market, where instalments are collected from customers’ homes.
17 December 2004
Consumer credit shake-up targets rogue lending
Tough new sanctions on rogue lenders could be introduced under a new Bill introduced in the House of Commons by Trade and Industry Secretary Patricia Hewitt. Measures in the Consumer Credit Bill would create a fairer, clearer and more competitive credit market, by bringing in new rules to give consumers better protection and more rights.
Consumer credit shake-up targets rogue lending
Tough new sanctions on rogue lenders could be introduced under a new Bill introduced in the House of Commons by Trade and Industry Secretary Patricia Hewitt. Measures in the Consumer Credit Bill would create a fairer, clearer and more competitive credit market, by bringing in new rules to give consumers better protection and more rights.
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