CONSUMER CREDIT

That this House expresses concern at the amount of literature sent by post by consumer credit companies advertising loans and credit cards; notes that often such literature suggests that recipients have been pre-approved for a product despite providing no information as to the pre-selection criteria used; expresses further concern that often such literature states that companies are regulated by the Financial Services Authority (FSA) despite the FSA having no regulatory role in the unsecured credit market; believes that this could potentially give recipients a false sense of security regarding the product advertised; notes that such literature is likely to disproportionately impact upon people in vulnerable financial positions; and calls on the Government to strengthen the regulation of the unsecured credit industry to ensure that any literature produced by consumer credit companies is both detailed and accurate.