Press Release

RESPONSIBLE FINANCIAL MANAGEMENT THE FOCUS OF FRINGE EVENT

t a fringe breakfast at today’s Liberal Democrat conference, frontbenchers Vince Cable and Julia Goldsworthy discussed Debt and the 21st Century Citizen with Teresa Perchard, Director of Policy at Citizens’ Advice and Stephen Sklaroff, Director General of the Finance and Leasing Association (FLA).

Stephen Sklaroff, Director General of FLA said:

"Recent market events should not cause us to forget that readily-available credit is a force for good. It spreads the benefits of a growing economy throughout society.

"The credit industry uses effective data-sharing to ensure we lend responsibly. But consumers, too, must be responsible borrowers. Better financial education remains a high priority.”

Teresa Perchard, Director of Public Policy for Citizens Advice:

“There is worrying evidence that while many have enjoyed the benefits of the credit boom, a large and growing number of people continues to pay the price, becoming overwhelmed by serious debt that can have a devastating impact on their lives.

"Local bureaux are now dealing with 6,600 new debt problems every working day, double the number ten years ago. Even more worrying are the signs that people are struggling not only to repay credit, but also to afford day-to-day essentials.

"We still see widespread evidence of people being lent much more money than they can afford to pay back, with many companies actively marketing expensive credit and loans to people who are already struggling.

"We need to build a culture in which lenders do much more to check that borrowers are really in a position to keep up repayments when they take out credit as well as people borrowing responsibly. 

"We want to see creditors being more willing to negotiate with people in debt, and to work with us in helping people manage their debt problems effectively.

"We need to build a healthier climate in which people have the understanding, skills and confidence to deal with money matters confidently ".

Speaking at a Citizens Advice/FLA fringe meeting on personal debt Vince Cable said:

"It has been clear to me for some time that we have a growing problem of personal debt - the number of people seeking help with their debts and bankruptcies has been rising steadily.

"But I fear these people are just the tip of the iceberg - millions of consumers say they struggle to meet all their payments.

"And for those people who have acted responsibly and saved their money, rather than borrowing to spend, this year has seen the crisis of Farepak and now Northern Rock.

"The entire financial services industry should see the queues of people outside Northern Rock offices this week as a wake up call to the need for all financial firms to do much more to restore trust and confidence in financial institutions ".

Vince Cable and Julia Goldsworthy also pledged that a Liberal Democrat government would do more than just talk about creating local financial advice services, to boost the services already provided by Citizens Advice Bureaux.