Cap on interest charges proposed

People will continue to be subjected to extortionate legal
lending rates unless an amendment to the Consumer Credit Bill is
passed, campaigners for fairer finance warned last week.

Debt on our Doorstep, a campaign network of charities and credit
unions, is urging MPs to back an amendment giving the bill the
power to enable maximum levels of interest and charges to be
introduced.

It says that, although the Department of Trade and Industry has
said it will keep its decision not to introduce ceiling rates under
review, no decision could ever be taken to introduce a ceiling
unless a power was included in the bill to allow this through
secondary legislation.

The organisation also wants MPs to pass an amendment that would
mean evidence of irresponsible lending would automatically make an
agreement unfair. It says that, as the bill stands, irresponsible
lending is just one factor courts can take into account in making a
decision.