Clause 13 - Interest on default sums

Part of Consumer Credit Bill – in a Public Bill Committee at 12:00 pm on 25 January 2005.

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Photo of Laurence Robertson Laurence Robertson Shadow Minister (Treasury) 12:00, 25 January 2005

Will the Minister consider extending the restriction to arrears generally, or has that been ruled unnecessary or undesirable? People get into trouble on arrears generally, not only on defaults. If a lender attracts simple interest on the arrears or the default, the money will be repaid with interest. Did the Minister consider extending the restriction to that extent? Arrears are potentially more dangerous for borrowers than defaults.