Payday Loans

Lord Kennedy of Southwark Excerpts

Tuesday 10th January 2012 Lords Chamber

Asked By

[Lord Kennedy of Southwark]

To ask Her Majesty’s Government what action they will take to ensure consumers are fully informed of the cost of payday loans.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Wilcox)]

My Lords, increasing transparency and understanding for consumers who use these loans is a key part of the work which came out of our consumer credit review, which is now concluded. We are working with the industry and consumer organisations to ensure that concerns about practices in this market that lead to consumer detriment are addressed in future codes of practice.

[Lord Kennedy of Southwark]

Does the noble Baroness agree that making sure that consumers make an informed choice is of paramount importance and that the consumer credit advertising regulations may be deficient in this respect? Will she facilitate a meeting between me and some campaigners with her right honourable friend the Business Secretary to discuss that matter?

[Baroness Wilcox]

I agree with the noble Lord that a well informed consumer is an empowered consumer. The information which is given out is often process driven by the people wishing to lend the money rather than those trying to borrow it. I have spent a long time looking at this, so I am with the noble Lord. I would welcome any ideas that he has which would enable us to work together on this.