Bill to ease over-indebtedness in the UK
The Consumer Credit Bill is starting to make a difference for people with excessive debts, according to the government.
14:49 05 August 2005
The government believes that the Consumer Credit Bill is starting to make a difference for people with excessive debts.
The Department of Trade and Industrys (DTI) progress report on tackling over-indebtedness in the UK reveals that, while most of the population is enjoying the benefits of credit, a small minority continue to struggle with excessive debt.
Consumer minister Gerry Sutcliffe, commented: "The Consumer Credit Bill will ensure that lenders act responsibly and that borrowers have effective recourse when treated unfairly."
Mr Sutcliffe added that an extra 45 million will be allocated to increases face-to-face services for those most in need and new measures will take a tougher line in dealing with the problem of illegal money lending.
Mr Sutcliffe announced the provision of a 120 million financial inclusion fund to improve access to affordable credit and increase the capacity of free face-to-face advice. The Consumer Credit Bill will introduce new consumer credit regulations, strengthen consumer rights and boost the credit licensing regime.
Department of Work and Pensions (DWP) minister James Plaskitt commented: "It is vital that we aim to tackle the full range of problems that people vulnerable to over-indebtedness can encounter. Research shows that this includes people on benefits and in particular lone parents.
"Work is the best way out of poverty and we have made significant progress in tackling worklessness, he added.