Lenders fail to warn of risks - then leave borrowers in the lurch.
February 4, 2008 4:19 PM
Commenting on reports that the credit card lender Egg is planning to stop 161,000 customers from using its cards, Liberal Democrat Shadow Chancellor, Vince Cable said:
"Hundreds of thousands, if not millions, of people who are currently on the margin of creditworthiness are going to find themselves excluded from normal sources of borrowing and will either have to cut back drastically on their spending or find themselves forced into very expensive forms of money lending.
"It is very striking that some of the lenders who aggressively promoted lending over the past few years without warnings of the risks are now the same companies pulling back from the market, leaving their borrowers in the lurch.
"The Government has been totally complacent about household indebtedness and the problems flowing from it.
"One urgent initiative is to roll out a national system of independent generic advice. The Thorssen report is currently looking at this, but the Government has been talking the talk for the best part of a decade and has so far done virtually nothing."
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