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House Of Lords Fire Shot Accross Gordon's Miracle Economy Bow

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UK Lords see 'substantial risk' of consumer debt defaults if interest rates rise

LONDON (AFX) - There is a "substantial risk" of defaults on consumer credit
debts if interest rates rise or the economic situation deteriorates further, a
House of Lords committee has warned.
In a report, the House of Lords European Union committee said the level of
over-indebtedness in the UK was a "cause for concern", even though it had not
risen significantly relative to the level of credit extended.
The peers added that too many lenders are making offers without explaining
their products adequately in a "highly pressured marketing environment".

"If" IR rise? Maybe not on Gordon's watch but give it time and the rest of the world continuing to hike.

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yeah and whats caused this debt? Bloody high house prices?

These fu****s can't have their cake and eat it!!! :angry:

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The committee also attacked a new EU directive to harmonise consumer credit

laws, claiming it could weaken existing British legislation.

The directive seeks to create a common standard across a single market for

consumer credit, thereby preventing member states from bringing in their own

laws which may vary the levels of protection given to customers.

And this is what it is really about. The Lords don't want the EU consumer credit directive.

Why not?

Because the directive would mean for the UK:

the knock-on effect on the UK economy as a whole would be:

* Consumer spending could fall by at least 4 billion [pounds sterling];

* GDP could decrease by at least 2 billion [pounds sterling];

* Consumers in the UK would be worse off by as much as 950 million [pounds sterling], with as many as two million UK consumers finding it difficult or impossible to obtain credit on the high street.

According to research, the UK credit market accounts for more than 30% of credit granted in the European Union, and is the largest credit market in the world, after the USA.


in other words, the directive would restrict credit and britons could stop borrowing.

Yes the Lords are very worried about over -indebtness, haha!

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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