MP's show support for amendments - keep lobbying
23rd January 2005

The Second Reading of the Consumer Credit Bill (13th January) saw many M.P's supporting the amendments drawn up by Debt on our Doorstep, and resulted in commitments to further consider the Government's decision not to implement a rate cap during the Committee stages of the bill which start this week. A full transcript of the reading can be found on Hansard at the Parliament website

To date, the Government has not explained how it will review its decision not to introduce a rate cap - particularly given that it is not seeking to reserve itself a power to do this through secondary legislation in the current Bill. Debt on our Doorstep requested details of the promised review in a letter to the DTI in December, but the DTI has remained tight lipped on the issue since then.

In the meantime, the South African review of Consumer Credit has resulted in the Government there proposing to take precisely the same type of power that Debt on our Doorstep proposes for the UK. The South African review, which ran in tandem with that carried out in the UK also proposes a 'reckless lending' test, similar to our own proposal for an 'affordability test', that would make lending without proper consideration of the borrowers' means unlawful.

Debt on our Doorstep asks M.P's to consider why the South African DTI is able to accommodate these proposals in its consumer credit bill, but our own Government is not?

The Report stage of the bill, which is expected in the week commencing 7th February, will provide for all M.P's to propose amendments and vote on the content of the Bill before it proceeds to the House of Lords. Debt on our Doorstep asks all supporters to maintain the lobbying of their M.P's throughout the next few weeks. A significant number of M.P's voting for our amendments at that stage would allow us to continue to lobby for changes in the Lords.

If supporters need further information to effectively lobby their M.P's then please contact us