Following the recent study by Leeds University into UK consumer debt, the credit card industry has announced plans to commission an independent assessment of all the recent reports and the different conclusions they have reached.

A spokeswoman for the DTI said: "The UK's credit market is far larger and more sophisticated than the one our credit laws were designed for.

"Back In 1971 only one type of credit card was available, compared to around 1,300 credit cards on the market now. And the amount of money owed on credit cards back then was worth £32 million but now it's over £49 billion.

"The DTI's forthcoming White Paper will ensure our credit laws meet the needs of a modern credit sector and ensure consumers know what they are getting themselves into when the sign up for loan deals."

Vince Cable, Lib Dem Treasury spokesman, said: "The credit card industry is in a state of denial and trying to pass the whole buck for the debt time-bomb to other lenders.

"The brutal truth is that British households are more highly indebted in relation to income than at any time in modern history. As the governor of the Bank of England suggested yesterday, those who are in debt up to their ears, face higher interest rates for years to come.

"Of course mortgages and equity release are large sources of credit expansion, but the credit card companies cannot escape responsibility for their part in the boom. We all get the junk mail circulars offering us an easy way to get out of a debt hole with a loan or a balance transfer.

"The main credit providers must review their promotions to families and students, who cannot afford to get into long term hock. If the credit industry can't rein itself in, the FSA and the government must crack down on the irresponsible lenders who promote unsustainable debt."

John McFall, chairman of the Treasury select committee, told ePolitix.com: "The inquiry by APACS is welcome but a bit late in the day. As well as the Leeds University report, we have been making the point about over-indebtedness constantly over the past few months.

"However, I am happy that by announcing the inquiry, they have recognised the problem."

Forum Response: APACS

Sandra Quinn, director of corporate communications at APACS, said: "It is all too easy to point the finger of blame for UK consumer debt at the credit card industry - but this is a sensationalist approach.

"As far as we are concerned the most robust report to date is the Kempson* report commissioned by the DTI and we are not sure why its findings have been so overlooked.

"Our study will identify what the genuine issues are and, if there are any specific issues, we will put forward suggestions to address them. The first question is how many people really are having trouble paying off their debts and, secondly, whether this is too high?"

Forum Response: Nationwide

Jennifer Williams, spokeswoman for Nationwide, told ePolitix.com: "Nationwide is an active player in the drive to improve clarity and transparency in the credit card market.

"We have been campaigning to help make sure that consumers get the information they need to be able to choose and use the best credit card for their circumstances - for example, in October last year we launched our 'Consumer Box' - an information table that aims to highlight key info about credit cards for consumers - and later we took this concept to the Treasury select committee.

"When the Committee launched their investigation into the credit card market they adopted our information box concept and now all credit card providers in the UK have agreed to produce a uniform box next year - Nationwide has modified its original box and is now the first financial services organisation in the UK to publish the new Summary Box in all of its credit card information.

"This new table provides consumers with the information they need to make properly informed decisions about which card is the right choice for them.

"We are committed to achieving a fair and transparent market for everyone who holds a credit card in the UK and believe that there is still a great deal more credit card providers can do to improve transparency in the market.

"We would like to see the industry committed to publishing examples of how much it would cost to clear a debt if the cardholder only made the minimum payment every month. This information is key to helping users manage their credit in the most cost effective way.

"We would also like to see the industry committed to publishing information to help customers understand how much a card will cost them. This should take the form of an online calculator which provides specific information and generic examples published alongside the Summary Box in all credit card literature. (Nationwide's calculator is due to be launched later this month.)"

Forum Response: National Consumer Council

Frances Harrison, head of policy at the National Consumer Council, said: "MPs have done consumers a great service by putting credit cards under the microscope in this way and exposing bad practices that can sweep some people into a vortex of debt. We urge people to follow the advice of the Barclays chief and shun expensive credit cards.

"The MPs' emphasis on clearer information on charging and what happens to your debt if you pay only the minimum each month is to be commended. What's needed now is for their findings and robust recommendations on credit cards to become a key strand in forthcoming new consumer credit laws."

Forum Response: Barclays

Ian Barber, spokesman for Barclays, told ePolitix.com: "We welcome the APACS report because there are lots of commentators out there producing analysis on where British lending is going and this study will help to clarify matters.

"Three factors have been driving borrowing. In real terms, wages have been increasing. Interest rates are low and the housing market has been buoyant. However, all of these appear to be levelling off - tax rises are cutting into people's wages for example."