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Consumers `increasingly experiencing debt problems` Over-50s `better at managing credit card debt` New banking rules `may restrict access to loans` UK `must reduce consumer debt` 700k `on Debt Management Plans` Recession `could lead to financial problems for retirees` Charity sees increase in debt, mortgage and loan arrear enquiries Retirees` finances `may be damaged by rate cut` Consumers `aiming to reduce spending` People `increasingly turning to illegal loans` Children raised in credit crunch `may be better able to manage money` Many parents `pushed into debt by adult children` Young people `failing to protect themselves for debt repayments` Consumers in East Midlands `relying less on debt to fund lives` Plans set out to help people in debt PPI ban `could leave consumers without loan cover` Govt `must step in to stop debt addiction` Cash-strapped Brits `see fraud as more acceptable` People `should not rely on mortgage rescue plan` Consumers `to take out £3bn in debt consolidation loans by Easter`

New banking rules `may restrict access to loans`

03/08/2009

Consumers may find it more difficult to access loans and other forms of credit as a result of new responsible lending rules which have been proposed by the government.

This is according to the Finance and Leasing Association (FLA), which said that the plans contradict the government`s call for lenders to help with economic recovery.

Under the proposals, which were recently announced by the Department for Business, loan providers will have to check people`s creditworthiness before providing them with money.

In addition, consumers will have a 14-day period after entering credit agreements in which to withdraw from them.

Lenders will also be under a duty to provide adequate explanations of the credit they are offering.

Responding to the development, the FLA said: "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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