§ Mr. BellinghamTo ask the Secretary of State for Trade and Industry what plans her Department has to abolish the rights of financial institutions to charge customers who repay personal loans early. [121908]
§ Mr. SutcliffeThe early settlement of personal loans is one of the priority areas being covered under the current review of the Consumer Credit Act
It is our intention to revise the current provisions to make them fair and equitable to both lenders and borrowers, and that consumers are better informed about these terms. A consultation document on proposed changes was issued last year to industry, consumer bodies and other interested parties and the responses are currently being evaluated.