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.

    More from Community Care

    Comments are closed.