Local Authorities join the campaign 24/03/03

At its Executive meeting of 18th March, the Local Government Association agreed to affilliate to the Debt on our Doorstep campaign.

Prudential - profiting from poverty? 17th March 2003

At last - Government launches consultation on Extortionate Credit 6th March 2003

Cheque Cashing - Will we learn from the U.S? 25th February 2003

Take A Stand against Debt 14/02/03

Liz McKenzie, who spoke at the Debt on our Doorstep lobby on 3 December about her personal experience of debt, was interviewed last week by Fergal Keane for the Radio 4 'Taking A Stand' programme. The half hour interview will be broadcast on Radio 4 at 9am on Tuesday 25th February. It will also be on the website so you can listen at leisure by clicking here after 25th Feb.

MP's debate Statutory Interest Rates in the UK 14/02/03

David Clelland, M.P for Tyne Bridge opened a parliamentary debate on the issue of low income and debt and was joined in calling for a statutory limit on interest rates by John Battle and Colin Challen, amongst others. For a full transcript of the debate from Hansard click here. Ruth Kelly, responding on behalf of the Government indicated that a statutory interest rate limit had not been ruled out by Government and that support for this should be fed into the forthcoming DTI review of the extortionate credit provisions of the Consumer Credit Act. Keep up the pressure on your M.P by writing to them and asking them to sign John Battle's Early Day Motion (see MP's Call for Statutory Interest Rate Limit, below) - this now has the support of over 150 M.P's but with your help it could be even more. For an example letter, download the Lobby of Parliament Pack from our Policy pages

Ministerial noises and a consultation paper 31/01/03

Melanie Johnson, MP, the DTI minister in charge of the review of the Consumer Credit Act, last week announced her intention to crack down on lenders who fail to take into account a borrower's ability to pay when making a loan. Measures being considered included introducing fines, or "three strikes and out" type penalties. The announcement follows the publication of the 2nd report of the Task Force on Overindebtedness, established 2 years ago by then DTI Minister, Kim Howells, and is coupled with the launch of a consultation document on the Consumer Credit Licensing scheme.
Melanie Johnson also indicated her intention to increase the level of representation from outside the lending industry on the Task Force, a welcome move. There is currently only one consumer representative, Teresa Perchaud from the National Association of Citizens Advice Bureau.
To get the 2nd Task Force report click here and here for the consultation document.

For coverage of the Minister's statement, try BBC's Working Lunch programme.

Lenders defend extortionate interest rates on Welsh radio 29/01/03

A representative of the Consumer Credit Association (the trade body for door to door lending companies) last night attempted to convince Welsh listeners that paying over £200 interest on a £400 loan in 12 months was no worse than buying your mate a drink in the pub after he'd lent you £20. We ask the Government, how much longer are you going to accept these ridiculous arguments? John Lamidey also compared moneylenders rates favourably to those charged by "high street electronics retailers" - was he perhaps thinking of Brighthouse (see below)? - Lamidey was surprisingly coy about the name of the retailer in question on last night's Wales at Work programme. To listen to the programme, click here.

Watchdog spots extortion on the High Street 29/01/03

BBC's Watchdog programme last night reported on the costs and lending activities of Brighthouse, a high street lender that targets people on low incomes and offers household items on HP schemes. Brighthouse, which was formerly known as Crazy George's, is part of Thorn Group plc, which is in turn owned by the multi billion pound Terra Firma Capital Partners, established in recent years, although now independent from, Japanese Bank, Nomura.

The Watchdog programme highlighted the costs of Brighthouse's 'optional' credit service cover - which can nearly double the costs of credit - and the practice of applying late payment fees. Whether or not, these practices are consistent with the recommendations from the DTI's Task Force on Overindebtedness - which called for lenders to be open about the true costs of their agreements - remains to be seen when the expected consultation paper on licensing and extortionate credit is released next month.
Click here. for the Watchdog report.