Lib Dems call on lenders to act more responsibly

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Liberal Democrat shadow chancellor Vince Cable has attacked banks for irresponsible lending practices and claims they must now share some of the blame for the rise in personal insolvencies.

His outburst follows the news yesterday high street bank Lloyds TSB’s bad debt provisions have increased 20% in the last twelve months to £800m across the whole group with 16% of this coming from its UK retail business. Cable says: “The irresponsible behaviour on the part of lenders and consumers over the last few years is now starting to show through in the bad debts that banks have to write off. “Banks must share some of the blame for rising insolvencies and must act more responsibly in the future.” While he also concedes “some individuals may have acted recklessly” he says banks are ...

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