Consumer Credit (Hansard, 10 November 2003)

§ Mr. Gardiner
To ask the Secretary of State for Trade and Industry (1) what action she will take to amend consumer credit law to stop shopping vouchers being used as a first contact for those selling doorstep loans; [136290]
(2) what representations she has received about loan companies using shopping vouchers as a means of avoiding consumer credit legislation which forbids unsolicited selling of loans; [136291]
(3) what discussions she has had with (a)high street stores and (b) trading standards departments to stop loan companies using store discount vouchers to avoid the consumer credit legislation which forbids unsolicited selling of loans. [136292]
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§ Mr. Sutcliffe
As you are no doubt aware, my Department is currently undertaking a major review of the Consumer Credit Act to bring it up to date so that it continues to provide appropriate consumer protection. A major aspect of this will be the publication in December 2003 of a Consumer Credit White Paper.
The review has been characterised by consultation, and decisions on the content and focus of the White Paper have been made after comprehensive discussions with key stakeholders—industry, consumer groups and enforcement agencies—including the Office of Fair Trading, which has responsibility for monitoring social and commercial developments in the provision of credit.
In addition, my Department has also received comments and opinions during the course of the review from many organisations and individuals—including on the issue of doorstep lending techniques—that have contributed to the development of the proposals that will be set out in the White Paper.

§ Mr. Gardiner
To ask the Secretary of State for Trade and Industry what steps her Department is taking in(a) the review of the Consumer Credit Act 1974 and (b) the preparation of the forthcoming Credit White Paper to require companies to make more accessible the language used in their (i) promotional and (ii) contractual material. [136631]

§ Mr. Sutcliffe
As the hon. Gentleman is aware, my Department is nearing the conclusion of its review of the Consumer Credit Act 1974. I have announced that a Consumer Credit White Paper, outlining our proposals will be published in December of this year.
Among other things, the White Paper, will set out proposals for reform in two key areas where clear and accessible information for consumers is required, the advertising of consumer credit products and the form and content of credit agreements. Alongside the White Paper we will publish consultation draft legislation to reform the law in these areas.