Saturday 14 February 2009

Protecting low income borrowers in the credit crisis

Debt on our Doorstep and Ian McCartney M.P have now finalised their report on measures that government can be taking to protect low income borrowers in the credit crisis. The full report is available from the link below.

The report has now been submitted to the Department of Business, Enterprise and Regulatory Reform and the Treasury and we are hopeful of a meeting in the near future.

In the meantime, the proposal to cap prices in non-competitive areas of the credit market is gaining further support with Transact members voting this as one of their top three priorities for action in a survey at the end of 2008. Following the Transact Annual conference London in November, we understand that there will be a number of regional debates organised on this issue in Spring 2009.

Protecting low income borrowers in the credit crisis

Government urged to bring forward introduction of enforcement restriction orders

Debt on our Doorstep and John Battle M.P have teamed up in a bid to get government to bring forwards the introduction of enforcement restriction orders. The Tribual, Courts and Enforcement Act passed by Parliament in 2007 contains provisions for the county courts to make the orders were a debtor's financial circumstances have significantly worsened since taking out credit, and allow for debt recovery action to be suspended for up to 12 months. With rapidly rising levels of redundancies and unemployment, the orders would provide real help now to many households struggling to cope with the recession.

However, following a parliamentary question from John Battle to Bridget Prentice at the Ministry of Justice, it would appear that the introduction of enforcement restriction orders is not scheduled until 2010.

We believe that is far too late and urge government to act now.

John has put down an Early Day Motion on the subject which is available from the link below. Please write to your M.P and urge them to add their signature.

http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=37814&SESSION=899