Credit: Regulation
The question
To ask the Chancellor of the Exchequer, what steps she is taking to help protect consumers from unregulated borrowing schemes in (a) Beckenham and Penge constituency and (b) other areas.
Answered by Emma Reynolds
The Government recognises that credit, when provided responsibly, can be crucial for people facing unexpected expenses or managing their cash flow. That is why it is committed to expanding access to affordable credit for people across the UK, so that everyone has the opportunity to access products and services which support their financial wellbeing and goals.
We are also taking action when concerns about consumer harm arise regarding unregulated products. For example, the Government has made regulating the Buy-Now, Pay-Later sector a priority and recently laid legislation to do so. The government’s approach will maintain access to a popular product while adding crucial safeguards.
More broadly, without access to affordable regulated credit some consumers may feel forced to turn to illegal money lenders. To combat illegal money lending, the Government funds specialist Illegal Money Lending Teams (IMLTs) operating across the UK. These teams investigate and prosecute illegal money lenders and offer support to their victims; further information about their work is available on the Stop Loan Sharks website.
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