DEBT AND FINANCIAL EXCLUSION

Early day motion 644, tabled 13 April 2000 by Evan Harris (Liberal Democrat). Signed by 77 members.

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.

Signatures by party: Labour 44, Liberal Democrat 21, Labour/Co-operative 7, Conservative 2, Independent 1, Plaid Cymru 1, Unknown 1.