HC Deb 05 May 2004 vol 420 c1631W
Mr. Todd

To ask the Secretary of State for Trade and Industry if she will make the provision of an analysis of a customer's ability to repay a loan an obligation on the lender; and if she will make a statement. [170640]

Mr. Sutcliffe

Our proposed reforms to the current law on extortionate credit bargains (which we will introduce when parliamentary time permits) will include a new test relating to unfair credit transactions. This new test will enable agreements to be more effectively challenged, and creditors who do not want to expose themselves to such challenges must ensure that the loans they make are not unfair. Responsible lending is a key part of this, and while the Government do not propose a 'one size fits all' regime for all credit providers, lenders will be expected to undertake enquiries that are proportionate in the circumstances.