Cable quizzes Ussher on repossession

9.36.00am GMT Wed 22nd Oct 2008

• VINCENT Cable (Deputy Party Leader; Twickenham, Liberal Democrat): After the Government's welcome announcement last week on the 13-week period for mortgage payments, is the Minister aware that many moneylenders are taking people to court for eight weeks' arrears, and even less?

Will she explain how the Government will properly co-ordinate their approach to mortgage repossessions and arrears, so that the most ruthless members of the mortgage-lending community do not take advantage of the taxpayer?

Kitty Ussher (Parliamentary Under-Secretary, Department for Work and Pensions; Burnley, Labour): Both our Department and colleagues in the Treasury, working with the Council of Mortgage Lenders and other lending bodies, have made it entirely clear that in these times, we expect lenders to use repossession as an absolute last resort. The hon. Gentleman will be aware of recent statements to that effect, following the emergency measures that my right hon. Friend the Chancellor took to inject more capital into the banks. Suffice it to say that it is very important, at this time, that all families and others realise the punitive interest rates that some people knocking on their doors can offer. I urge them to seek affordable credit, if it is indeed credit that they require.