DEBT AND FINANCIAL EXCLUSION

Summary

That this House notes the publication of the Social Exclusion Unit's report (PAT 14) into financial exclusion which confirms that a lack of access to short-term credit and other financial services create serious problems for many low income households; notes that research published by the Policy Studies Institute in 1994 found that three million households were reliant on the services of licensed money-lenders who routinely charged between 100 per cent. and 500 per cent. APR for cash loans; further notes that many people on low incomes turn to these money-lenders to pay for essential items; believes that this situation has contributed to the dramatic increase in debt-related problems recently reported by the National Association of Citizens' Advice Bureaux; calls on the DTI to fully implement the recommendations from the research they commissioned from Bristol University into the problem of extortionate credit lending; calls for the Government to promote economic citizenship as part of its commitment to tackling poverty and social exclusion; wishes to see a joined up approach from Government which incorporates increased access to social fund grants for essential items for people on low incomes, improved regulation of consumer credit lending - including a statutory maximum interest rate, better resourcing of credit unions, and the promotion of socially responsible service provision by high street banks; welcomes the launch of the Debt on our Doorstep campaign; and calls for a public debate on this issue.

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Timeline

1. 13 April 2000

   Early Day Motion

   That this House notes the publication of the Social Exclusion Unit's report (PAT 14) into financial exclusion which confirms that a lack of access to short-term credit and other financial services create serious problems for many low income households; notes that research published by the Policy Studies Institute in 1994 found that three million households were reliant on the services of licensed money-lenders who routinely charged between 100 per cent. and 500 per cent. APR for cash loans; further notes that many people on low incomes turn to these money-lenders to pay for essential items; believes that this situation has contributed to the dramatic increase in debt-related problems recently reported by the National Association of Citizens' Advice Bureaux; calls on the DTI to fully implement the recommendations from the research they commissioned from Bristol University into the problem of extortionate credit lending; calls for the Government to promote economic citizenship as part of its commitment to tackling poverty and social exclusion; wishes to see a joined up approach from Government which incorporates increased access to social fund grants for essential items for people on low incomes, improved regulation of consumer credit lending - including a statutory maximum interest rate, better resourcing of credit unions, and the promotion of socially responsible service provision by high street banks; welcomes the launch of the Debt on our Doorstep campaign; and calls for a public debate on this issue.

   Source: Early Day Motion

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Sponsors

• Dr Evan Harris · Liberal Democrat · Primary sponsor

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