Clause 19 - Unfair relationships between
Consumer Credit Bill
3:30 pm
Mr Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations, Competition and Consumers), Department of Trade and Industry; Bradford South, Labour)
The hon. Lady and the Committee must be careful not to throw the baby out with the bathwater. In the context of the whole Bill, and in relation to the regulations resulting from the consumer credit White Paper, we seek to ensure that there is responsible lending and borrowing, that there is education for the consumer and that the redress mechanisms, which at present do not exist, are in place. The extortionate credit test is too high a hurdle; the unfair credit test is better. It is right and proper that we discuss unfair credit, but it is wrong to say that the Bill will not help the situation. It has been welcomed by the industry, by consumer groups and, as I understand, by all political parties at Second Reading.