Chancellor must tackle actions of mainstream lenders - Cable

8.55.44pm GMT Thu 25th Jan 2007

Responding to Gordon Brown's remarks in a Parliamentary answer to Greg Mulholland MP, that he intends to bring forward measures to crack down on 'loan sharks', Liberal Democrat Shadow Chancellor, Vince Cable MP said:

"Its is good to see that action is being taken on exorbitant lending.

"However, the Chancellor's reference to his financial advice program fails to mention that the Government's independent advice facilities will not come in to effect until 2012.

"The Government must clarify whether this valuable generic advice, offered through the CAB network, will happen now.

"While it is necessary to crack down on the most serious abuses by 'loan sharks', the Chancellor has sidestepped the much more important question of the dubious activities of mainstream lenders. These include unsolicited debt promotion, lifting overdraft limits without the request of the borrower and making mortgages available which are clearly not sustainable."

Applicability: this item refers to England and Wales. Due to devolution, detailed policy may be different in other areas of the UK.