Clause 8 - OFT to prepare information sheets on arrears and default
Consumer Credit Bill
9:55 am
John Battle (Leeds West, Labour)
We have two images of the person taking out a loan. Sometimes we think that they can absorb incredible amounts of information and detail and analyse the fine print, and then are okay. That is not the reality. The hon. Member for Wealden mentioned languages, and the problem relates to the wider issue. Perhaps hon. Members remember that a strong emphasis was placed on the need for financial education for everybody.
We all have briefings from Nationwide, GE Capital and other big lenders who are keen to tell us that they are working in partnership with debt charities, credit action services and consumer credit counselling services. At the front end of the process, when the Chancellor puts up money to help with debt advice, can companies, such as Nationwide and GE Capital, the lenders and the credit agencies be consulted and get together, as they have for this Bill? They could discuss what more they could do to help consumers understand what they are getting into, how they present the material—including in different languages—and other ways of ensuring that there is proper, personal back-up for people taking out loans. I am anxious to reduce debt—