Mr. Gareth R. ThomasTo ask the Secretary of State for Trade and Industry what plans she has to reform the Consumer Credit Act to tackle loan sharks; and if she will make a statement. [39026]
§ Miss Melanie JohnsonThe Department is in the process of reviewing the Consumer Credit Act in order to improve consumer protection against unfair lending practices. I published the summary of responses to our consultation paper "Tackling loan sharks—and more" on 18 February. The summary contains a provisional timetable for when DTI expects to publish further consultation papers on our plans to modify the Consumer Credit Act and improve consumer protection against unfair lending practices. The summary also sets out the following priorities for the review:
- Improving the consumer credit licensing regime;
- Making the extortionate credit provisions more effective;
- Increasing consumer protection by changing the Consumer Credit Act's financial limit and categories of exempt agreements and simplifying the rules on multiple agreements;
- Enabling consumers to conclude credit agreements on-line;
- Simplifying the advertising regulations, including the regulations on the Annual Percentage Rate (APR);
- Amending the rules on early settlement, and;
- Implementing recommendations by the Task Force on overindebtedness.
- Copies of both the consultation paper and the summary of responses have been placed in the Libraries of the House.