Consumer Credit Bill

Yes. The network is under enormous pressure and there are signs that it is dying, so it should be a priority to find new uses for it. I very much support the work of credit unions and it would be a very good thing to use the post office network in that way. We need a competitive market, but that can be achieved only if consumers are informed, which depends on transparency and clarity of information, as well as the absence of misleading marketing and promotions. Indeed, the 2003 White Paper was entitled ““Fair, Clear and Competitive””. There must also be adequate protection for consumers and the means for them to seek redress. We all accept that personal responsibility is important, but the industry also has a duty to behave responsibly, particularly towards vulnerable consumers, including people on low incomes, people with mental health problems and young people. As the father of a 17-year-old son, I am acutely aware of the importance of responsible lending to young people. The industry has had to face up to quite a challenge. It can be easy to tar everyone with the same brush, but I think that parts of the industry have behaved irresponsibly and unacceptably. That does not apply only to the backstreet lenders; there are names on the high street that have behaved improperly and got people into a lot of difficulty, leading to some tragic cases, including suicides. There is culpability among the high street names as well as the backstreet ones. The Select Committee on the Treasury should have some credit for initiating a debate on some of those unacceptable practices. During the inquiry, Barclays bank had to withdraw a promotion, under pressure from the Office of Fair Trading, because it was misleading. There has been a response and progress has been made. The introduction of summary boxes giving clear information is one way in which the industry has responded. It has moved some way, although not far enough, in my view, towards providing clear information so that the consumer has the information that is necessary to make an informed judgment. Some of the worst excesses are therefore now in the past, but there is still a long way to go and key concerns remain. We need to consider how, if at all, the Bill addresses those concerns. First, there has been a failure to achieve adequate data sharing, and reform is essential. We have not got there yet and I am not convinced that the Bill does anything effective to address the problem. I shall be interested to hear the Minister explain precisely how he envisages we can crack the problem. Difficulties arise when people go to a number of different lenders and borrow—they may well be making the minimum monthly payments—so that the total amount never shows up as a default, but cumulatively gather a debt that is completely unsustainable, after which everything crashes. It is incredible that that can continue. Many financial institutions accept that data sharing must come and that it must be complete, but some institutions are still resisting it. On this issue, as on some others, the Minister could use the Bill and the threat of possible amendment to force the hand of some of the companies involved and persuade them to move further than they have done so far. I urge him to consider that. There has been a long debate about the problem of data sharing, and it is time for some action.