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Time to act

09 August 2007 / Nicholas Ryder
Issue: 7285 / Categories: Features , Banking , Commercial
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Legislation is needed to encourage the growth of credit unions, says Dr Nicholas Ryder

 Access to the consumer credit market in Great Britain has dramatically altered over the last 30 years. Providers of credit now allow consumers to access credit over the internet and through their interactive televisions. Such innovations have brought greater convenience to millions of consumers. There is, however, a dark side to the consumer credit market, fuelled by convenient access to credit, eg record levels of consumer debt, an increase in irresponsible lending practices, ineffective legislative protection of consumers and financial exclusion.

Financial exclusion refers to a person’s inability to access essential and basic financial services in an appropriate form. It is said that 7.9 million people are financially excluded in Britain. The problems associated with the consumer credit market were largely ignored by Conservative governments. New Labour, however, has initiated several policies aimed at tackling financial exclusion. Of particular relevance was the report published in 1999 by Policy Action Team 14 entitled Access to Financial Services. It recommended that credit

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MOVERS & SHAKERS

Charles Russell Speechlys—Gustina Singgih

Charles Russell Speechlys—Gustina Singgih

Corporate team in London welcomes new partner

Church Court Chambers—Maria Karaiskos KC

Church Court Chambers—Maria Karaiskos KC

Historic appointment of chambers' first female head

Wright Hassall—five promotions

Wright Hassall—five promotions

Firm announces five promotions, including new partner

NEWS
Proposed legislation to tighten the rules on pooled client accounts would place ‘substantial’ burdens on solicitors, the Law Society has warned
Increasing numbers of family mediators are cutting back on legal aid work or leaving the sector altogether due to low fees—creating a supply shortfall for low-income families
Lawyers acting in cases funded by damages-based agreements (DBAs) cannot claim their share of the damages if no damages are awarded, the High Court has clarified
Lawyers have given a cautious welcome to a Ministry of Justice decision to increase Crown Court sitting days
Barristers have been targeted with death threats, rape threats, threats to their family members, physical surveillance and threats from politicians, chair of the Bar Barbara Mills KC has reported
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