Personal Debt Worries Heighten (Sharon Bowles MEP)

Sharon Bowles MEP <info@sharonbowles.org.uk>

Personal Debt Worries Heighten

September 11, 2007 1:36 PM

British money South East Liberal Democrat MEP Sharon Bowles has today called on both the Government and financial lenders to do more to ensure consumers are fully informed about the loans and credit agreements they are signing up to.

Speaking in response to the Citizens Advice Bureau's (CAB) announcement today that it has seen a 20% increase in debt enquiries in the last year, Sharon Bowles said "We have gone through a long period of cheap credit. Banks, building societies, store and credit card companies have actively pursued new and existing customers to take up loans/credit through aggressive marketing and special offers. But I doubt they have been so enthusiastic about ensuring customers properly understand what they are signing up to."

The CAB has said that credit card debt and unsecured loans have dominated their calls on debt. 1 in 4 of all debt enquiries last year concerned credit and store cards.

Sharon Bowles said "The Government must be far more active in providing citizens the skills and confidence they need to manage their money sensibly. There is a distinct lack of preventative advice and education out there and this has to change."

Sharon Bowles went on to say "Lenders also have to act responsibly. Offering further loans or credit to those already struggling with their current payments is reckless. Such techniques prey on those who are vulnerable and in desperate and dire straits."

The European Commission is expected to come forward this month with a report on Financial Education and has already looked into credit cards and why their charges are so high.

Sharon Bowles said "This is an excellent opportunity for different countries to discuss and share ideas as to how they are approaching this problem. I hope the UK Government will take an active role in this."

ENDS

Notes:

Information about the Citizens Advice Bureau's findings can be found on their website http://www.citizensadvice.org.uk/index/pressoffice.htm