Release/Rhyddhau: 11 May 2005

Local AM calls for banks to behave more responsibly over credit.

The recent case of a Swansea family who have been saddled with £100,000 of debt by the local Lloyds TSB branch has underlined the need for government action to make banks behave more responsibly to their customers, the Welsh Liberal Democrats spokesperson on Social Justice, Peter Black, has said.

“I was horrified to read the details of this story,” said Mr. Black. “Together with Liberal Democrats in Westminster, I have been warning of the dangers of predatory lending in the door to door loans industry, and have been trying to get New Labour to take firm action over the interest rates charged by some firms operating in this sector.”

“High Street banks have a huge responsibility in this area, precisely because they are supposedly the acceptable face of banking. They need to be seen to behave in a more responsible manner, than the less reputable parts of the financial service industry.”

“I understand that the member of staff concerned has been suspended pending investigations, that however is not the point. What Lloyds TSB – and our other major lending institutions – must do is ensure that they have proper controls in place to ensure that people are not bamboozled into taking out loans they cannot repay. If they cannot, or will not, then they must be forced to do so by government.”

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