Financial Services Bill

I agree with my hon. Friend. Often it is a combination of ignorance and desperation, and that is an explosive combination when people want to get money. As the Crowther committee on consumer credit reported in 1971, there is a level of cost for the total package of credit at which it becomes socially harmful to permit such lending to take place. I agree with that assessment from 40 years ago, because genuine social harm is done in extending credit at such high prices to people who, frankly, one would think perhaps ought not to get credit. One really wonders whether people should get credit at 272.2 per cent., even if—I stress this point—it is quite legitimate. My new clauses are an attempt to address that point. One alternative method of assisting people with bad credit ratings who need credit—I know that this proposal will appeal to my hon. Friend the Member for Stroud (Mr. Drew) and others—is to boost credit unions' share of the market, which is significantly underdeveloped in the United Kingdom, compared with other countries such as Ireland and Canada. However, it has been suggested by the financial inclusion taskforce that at the current rate of growth, alternative lenders such as credit unions would take 10 years or so to fill the gap that is currently being filled by the doorstep lenders who charge such large amounts of money. Not surprisingly, Provident Financial is a little concerned about the new clauses.