Caution Needed by OFT in Doorstep Credit Inquiry
12.29.07pm BST (GMT +0100) Mon 14th Jun 2004
Commenting on the announcement that the National Consumer Council has made a super-complaint to the Office of Fair Trading (OFT) regarding the doorstep credit sector, Liberal Democrat Shadow Trade and Industry Secretary, Malcolm Bruce MP, said: "These organisations cater for the poorer end of the market, which the banks and credit companies usually have no interest in. For some on low incomes, the home collected credit sector represents their last chance of a loan.
"The OFT must investigate allegations of abuse, unfair practice and excessive charging but they should step carefully in this territory.
"The OFT's first priority should be the consumer. Instead of helping them, a heavy-handed approach which stamps out doorstep credit could succeed in driving thousands of desperate people into the arms of loan sharks."
ENDS
Notes
The home collected credit sector (otherwise known as 'doorstep credit' or 'weekly collected credit') is the subject of the latest super-complaint received by the OFT.
The National Consumer Council has asked the OFT to look at concerns in the sector which is worth around £2 billion a year in outstanding balances.
The OFT will announce within 90 days (by 10 September) what action, if any, it proposes to take.
[Print this story]
[Previous story]: Debt Bonanza Brings Bailiffs Out Of Woodwork - Bruce (Fri 11th Jun 2004).
[Next story]: ODPM House Prices: Brown Must Tackle Reckless Lending - Cable (Mon 14th Jun 2004).
[Other news stories from June 2004 (17)]
Related News Stories:
Tue 26th Jul 2005:
[OFT Must Clamp Down on Anticompetitive Behaviour by Credit Card Companies - Cable]
Fri 24th Jun 2005:
[Inquiry needed into customs and excise performance on prosecutions - Lamb]
Wed 12th May 2004:
[Doorstep Selling or Doorstep Coercion?]
Printed and hosted by Prater Raines Partners, 82b Sandgate High Street, Folkestone CT20 3BX.
Published and promoted by Liberal Democrats in Business, 4 Cowley Street, London SW1P 3NB.
The views expressed are those of the party, not of the service provider.
|