The UK Department of Trade and Industry has set up a task force to examine the causes of over-indebtedness and look for ways of encouraging responsible lending and borrowing. The task force will begin work before the end of 2000 and will report to the government by spring 2001.
The new project will target three main issues. It will seek:
1. To clarify the information given to consumers before they make a credit agreement;
2. To ensure that lenders apply certain basic principles of lending practice, including examining a potential borrower’s ability to repay a loan and assessing their total borrowing exposure;
3. To ensure that consumers are fully informed before the final payment of a free and low interest agreement is made.
Department of Trade and Industry