Government plan leaves much more to do..
19th July 2004

The Action Plan for Tackling Over-indebtedness, announced today (20 July) shows considerable commitment to providing comprehensive support for combating some aspects of over-indebtedness, but does little to take on extortionate lenders.

The Debt on our Doorstep campaign welcomes many positive aspects of the Tackling Over-indebtedness - Action Plan 2004 launched today:

• The plan recognises the importance of debt and financial exclusion to tackling poverty
• It seeks to make affordable credit available across Britain.
• The Social Fund system will be made fairer
• It joins up the work of several departments - DTI, DWP and DCI.
• Greater support for free money advice

However, supporters of the Debt on our Doorstep campaign note there are some important aspects missing:

• It does little to tackle the legal extortionate lenders
• It is unclear how the plans will be resourced

Damon Gibbons, of the Debt on our Doorstep network, said:

'The action plan should be great news for those using credit on a low income. But the Action Plan is only half the solution: as well as supporting the provision of affordable credit, the Government has to use legal measures to control the burgeoning business of legal loan sharks. Our supporters believe the best way to tackle extortionate credit in Britain is by introducing a legal interest rate ceiling. International experience shows, this is one of the most effective actions to tackle over-indebtedness for those on a low income.'