New clause 3 - CREDIT TOKENS
Consumer Credit Bill
6:00 pm
Charles Hendry (Shadow Minister, Trade & Industry; Wealden, Conservative)
The hon. Gentleman may have seen that new clause 4 covers exactly those issues of the raising of credit card limits without the agreement in advance of the proposed recipients. I agree that that is where the practice is at its most dangerous. The fact that someone can still spend only up to their limit is protection, but if it is possible to spend significantly beyond that, there is a risk of spending money that cannot realistically be paid back.
The restrictions would not apply to invitations to apply for credit cards in general. They would specifically relate to credit card cheques. Many representations were made on Second Reading about the need to tackle this matter—as, indeed, happened when the Bill was introduced previously. I hope that the Minister can give the Committee some reassurances.