Written question asked by Keith Vaz (Labour) on Thursday, 18 September 2003, in the House of Commons. It was due for an answer on Thursday, 16 October 2003. It was answered by Gerry Sutcliffe (Labour) on Thursday, 16 October 2003 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: To ask the Secretary of State for Trade and Industry, what steps the Government is taking (a) to monitor the extent to which credit companies offer high interest loans and (b) to regulate the practice. - including ref to Consumer Credit Act 1974 and fact that I intend to publish a White Paper this autumn.

Answer: Keith Vaz: To ask the Secretary of State for Trade and Industry what steps the Government is taking (a) to monitor the extent to which credit companies offer high interest loans and (b) to regulate the practice. [131747] Mr. Sutcliffe: The information is as follows: (a) There are currently in excess of 200,000 businesses licensed under the Consumer Credit Act 1974 and monitoring the activities of all these businesses would create a significant burden on legitimate business. (b) The Consumer Credit Act 1974 contains provisions that allow a consumer to challenge an extortionate credit bargain. However, only about 30 extortionate credit cases are known to have reached the courts since the Act came into force and of those, in only 10 did the court find the agreement to be extortionate. I believe that these provisions have not operated effectively in enabling consumers to challenge unfair credit agreements and I intend to publish a White Paper this autumn, which will contain details of how I intend to make it easier for consumers to challenge unfair credit transactions.

Secondary information

Type: Written question
Reference: 131747; 411 c284W;411 c288W
Session: 2002-03
Subjects: Consumers Credit agreements Financial services Interest rates Protection Monitoring Loans Money lenders Regulation
Link: View this Written question on www.publications.parliament.uk