§ Mr. LoveTo ask the Secretary of State for Trade and Industry when the review of the Consumer Credit Act 1974 will be completed; what the terms of reference of that review are; and if she will make a statement. [73011]
§ Miss Melanie JohnsonLast July I published a consultation documentTackling loan sharks—and more! which set out proposals for the first major review of our consumer credit laws in almost 30 years. The aim of the review is to create a modern regulatory framework that protects consumers against loan sharks and other unfair lending practices, while enabling business to operate competitively in a modern credit market.
The priority areas for review are:-
Changing the financial limit for credit agreements covered by the Act and reviewing the categories of exemptionAmending the rules on early settlement of loansEnabling consumers to conclude credit agreements on-lineChanging the licensing regime to target enforcement on keeping the loan sharks out of the marketMaking the extortionate credit provisions more effectiveSimplifying the advertising regulations, including the regulations on Annual Percentage Rates (APR's), andSimplifying the rules on multiple agreementsIn March I consulted on the first of the substantive issues—increasing/removing the financial limit. We are now considering the responses to that consultation. Further consultations on the remaining priority issues will follow during the remainder of 2002 and the early part of 2003.