Clause 6 - Statements to be provided in relation tofixed-sum credit agreements
Consumer Credit Bill
10:00 am
Dr Jenny Tonge (Richmond Park, Liberal Democrat)
I beg to move amendment No. 29, in clause 6, page 4, line 32, after 'made', insert
'or the mid-point of the loan, whichever is sooner'.
We accept that lack of information for borrowers about their credit agreement contributes to the scale of debt. People who have fallen into arrears are especially affected. Clause 6 calls for annual statements, and that is very welcome indeed. Some people get annual statements now; some do not. We are concerned about fixed sum loans that last less than a year. They often carry very high interest rates and are often rolled over. People often get into huge difficulties with such short-term loans. The amendment asks the Minister to consider a mid-term statement as well as an annual statement for those on short-term loans so that debtors are quite clear on how they stand half way through the term. I understand that the Citizens Advice Bureau supports the amendment.