MP warns of debt at alarming levels
Wealden MP Charles Hendry took to the dispatch box in the house of Commons last week to lead the Conservative Party's response during the second reading of the Consumer Credit Bill.
Mr Hendry, Shadow Minister for Industry and Enterprise, offered his broad support for the Bill, which aims to increase consumer protection against extortionate and unfair credit and loan agreements.
He said: 'As Members of Parliament, we have seen in our surgeries the consequences of irresponsible, or worse, rogue lenders and extortionate credit agreements. We have seen such consequences destroying people's livelihoods, families and mental health. In the worst cases people have tragically been driven to suicide because they have been unable to cope with the huge debts that they have built up.
'I pay tremendous tribute to the work of citizens advice bureaux and other debt advice organisations that help many individuals and families to deal with financial difficulties. Without those bodies, many more people would suffer the same sort of problems.'
The MP also warned that personal debt among consumers was rising at alarming levels. 'We should be worried about the growing level of debt in Britain, which is rising at a staggering 4 million every four minutes. In 2004 alone, debt increased by 116 billion, which was the largest single increase in debt since the Bank of England was founded in 1694. According to the charity Credit Action, total personal debt in Britain has broken through the 1.1 trillion barrier.'
Speaking after the debate, Mr Hendry said: 'I welcome the introduction of this Bill as a means of offering better protection to those who choose to take out credit agreements, but I urge the Government to do more to help people out of the debt cycle. Up until now, I think they have been complacent. It took 600 years of banking history for household debt to reach half a trillion pounds. Now, under seven years of Labour, this has doubled.
'I know that there are many people across Wealden who will be suffering from financial difficulties and the stresses caused by debt. We have to do more to help lift people out of that kind of situation. By raiding pensions funds, introducing tax rise after tax rise, decimating the savings culture and taking more and more of people's hard earned money away, the Government is simply making the situation worse. It needs to change tracks before levels of debt in Britain spiral out of all control.'
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Thursday 09 February 2012
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