Renfrewshire Debt Hits £5,915,965

renfrewshire debt MP meets Renfrewshire Citizens’ Advice Bureau to discuss new debt report

Douglas Alexander this week met with Renfrewshire Citizens’ Advice Bureau (CAB) and called for urgent action to crack down on irresponsible lenders.

Mr Alexander met with CAB manager Stephen Darroch to be briefed on their new report and discuss the issues faced by people living with unsustainable debts in Renfrewshire. Mr Darroch was able to reveal to the local MP new figures showing the George St CAB office are now assisting with debts totalling £5,915,965. The most common type of debt was credit card debt – totalling a whopping £1,508,148.

Following the George St meeting Mr Alexander called on UK Consumer Minister Kevin Brennan to ensure credit and store card companies give people a fairer deal and prevent spiralling debts.

Mr Alexander called for:

Banning the practice of increasing credit limits without prior consent
Banning unasked for credit card cheques
Placing restrictions on increasing the interest rate on existing debt
Raising the minimum monthly repayments levels to encourage people to pay off their debt faster
Changing the rules so that the most expensive debt on your credit card is paid off first. (Currently most credit card companies make you pay off the cheapest debt first.)

Renfrewshire CAB Manager, Stephen Darroch, said:

"Debt is affecting all kinds of people, but a national report released today by 'Citizens Advice Scotland' has shown that many of those who are worst affected are those who are already among the most vulnerable groups in our society, like lone parents, pensioners and the disabled.”

Douglas Alexander said:

“These new figures show the scale of the debt problems facing Renfrewshire families. This is an important report about an issue which affects too many vulnerable people across Renfrewshire. During this difficult economic time I want to do what I can to help local people manage their finances and cope with repaying their debts.

"The report reflects what I hear about time and time again are complaints from people about unfair practices and rip offs. Whether its over the top charges in credit card bills, credit repayments or the high cost of credit on things like store cards, it's clear that something needs to be done to help consumers. It’s time for credit and store card companies to clean up their act.

"What concerns me most is interest rates being increased without proper explanation. Consumers using their cards responsibly and making payments on time should not pay the price for excessive risk-taking by financial institutions. So I met with the UK Consumer Minister Kevin Brennan to urge the Government to restrict the re-pricing of existing debt."

UK Consumer Minister, Kevin Brennan said:

“I agree with Douglas that it is not acceptable for card companies to impose complex and confusing terms and conditions that can leave people baffled, or to increase interest rates without a proper explanation. Consumers have a real responsibility to manage their finances properly, but they also have a right to clear information to enable them to do that. Consumers in Renfrewshire should not feel each month as if they’ve been exploited or disadvantaged.”