Parliament to debate bill to restrict interest
14th June 2004

Wednesday 18th June sees the first debate of a bill to bring in an interest rate ceiling in the U.K. The bill, to be introduced by Adam Price M.P, Plaid Cymru, would provide the Office of Fair Trading with the power to introduce an interest rate cap if it first finds that a market is not operating competitively and is harming consumers. The links with the NCC's grounds for a supercomplaint are clear (see separate story, 14th June 2004), and we ask the Government to consider backing Adam Price's bill in order to provide the OFT with the powers necessary to provide a fair deal for borrowers in the home credit industry.

The bill, which Debt on our Doorstep has helped to draft, negates many arguments used by lenders against interest rate caps generally. For example, the OFT would only be able to introduce a cap if the market was not competitive and there was clear evidence of overcharging. The level of the cap would be at the discretion of the OFT, which would have to have regard to the level of fixed costs in the industry and allow the lender to make a reasonable level of profit.

Please take the time to write to your M.P, asking that they support Adam Price's bill. The initial Hansard debate, giving leave for the bill to be tabled, can be found by clicking here