House of Lords debating high risk personal loans

The House of Lords has been debating high risk personal loans along with other issues that concern consumer credit and debt.

Lord Newbury asked whether the government was doing everything it could to combat growing debt levels. The Liberal Democrat lord also blamed the government of exercising a snail's pace over its investigation of consumer credit.

Lord Triesman argued that consumer debt, caused by credit cards and personal loans, hadn't risen as quickly as people's assets had and that current levels of debt were a sign that people felt confident about the economy.

However, Lord Triesman did say that the government did "not encourage reckless debt".

He highlighted Barclays' boss Matt Barrett, who told a Treasury committee earlier this year that he would not use his own bank's credit card to withdraw cash due to the high interest rates charged on it.