New rules 'may restrict consumers' access to credit'

Consumers may find it is more difficult to secure credit if proposals announced last month by the government go through, according to an industry body.

Recently, the Department for Business revealed plans under which more stringent lending criteria would be implemented in the UK.

For example, loan providers would have to check people's creditworthiness before providing them with money.

Also, lenders would be under a duty to provide adequate explanations of the credit they are offering and consumers would have a 14-day period after entering credit agreements in which to withdraw from them.

In response to the plans, the Finance and Leasing Association said they contradict the government's call for lenders to help with economic recovery.

It added: "At a time when we need to stimulate the economy, these proposals will restrict access to credit and could force consumers into the unregulated sector where credit is available more quickly and without any checks."
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03/08/2009 15:52

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