To ask the Secretary of State for Business, Enterprise and Regulatory Reform if he will (a) investigate the activities of companies offering loans secured against the logbooks and related documents associated with car ownership and (b) assess the impact of such practices on consumers on low incomes and with poor credit ratings. (193214)

The Office of Fair Trading has received complaints about businesses offering loans of this kind which it is currently considering. A common feature of the complaints received is that it is alleged that the full consequences of defaulting on such loans has not been explained to the consumers. The OFT is responsible for ensuring that consumer credit licences are only held by businesses that are fit to do so. Any evidence that a business has engaged in unfair business practices would be relevant to a consideration of its fitness to hold such a licence.