HC Deb 27 October 1988 vol 139 cc449-50
15. Mr. Tony Banks

To ask the Chancellor of the Exchequer what is his latest estimate of the level of personal debt in the United Kingdom.

Mr. Norman Lamont

Personal sector financial liabilities in the first quarter of 1988 were £294 billion, roughly one third the level of personal sector financial assets.

Mr. Banks

Is the Minister aware of the extreme financial difficulties that large numbers of people are getting themselves into because of the easy availability of credit, albeit at high interest rates? Does the Minister intend taking any action to curb the irresponsible behaviour of banks, finance houses, credit card companies and stores in inducing people to get themselves into a debt that they cannot repay?

Mr. Lamont

The hon. Gentleman has obviously not noticed that my hon. Friend the Under-Secretary of State for Industry and Consumer Affairs has announced a number of changes to the Consumer Credit Act 1974, which will enable the Government to take action against particular lenders, especially those who are in any way acting against the public interest. Obviously, some situations cause difficulty. M y hon. Friend has put forward a number of proposals.