The DTI published an up-dated impact assessment in 2006 on the revised proposal for a Consumer Credit Directive. Our assessment then was that it could impose potential costs on lenders and lead to a possible reduction in access to credit among consumers, both of which could have a negative impact on consumer spending. Since then the proposal has been through a number of re-drafts and we think this risk has been very much reduced. It is not practicable to make any further assessment of the impact of the proposal post-implementation at a time when the text is subject to frequent change. We will be up-dating our impact assessment in the light of the final text if and when the directive is agreed. I will write to the hon. Member as the impact assessment is updated—and place copies in the Libraries of the House.
The DTI published an up-dated impact assessment in 2006 on the revised proposal for a Consumer Credit Directive. Our assessment then was that it did put at risk the diversity of credit products and could drive up costs and prices and lead to a reduction in the availability of credit particularly to the sub-prime market. Since then the proposal has been through a number of re-drafts and we think this risk has been very much reduced. Negotiations are ongoing and we will be up-dating our impact assessment in the light of the final text if and when the directive is agreed. I will write to the hon. Member as the impact assessment is updated and place copies in the Libraries of the House.