PARLIAMENTARY EARLY DAY MOTION
CELEBRITY ENDORSEMENT OF SECURED DEBT PRODUCTS (7 May 2006)

That this House is concerned about rising levels of secured debt, due in part to celebrity endorsement of such products, particularly from individuals who are well known for their mathematical skills which gives the impression that such products are financially safe; notes that failing to repay secured loans can result in losing one's home or leave people locked into long-term debts which means the overall interest cost is substantially increased; further notes that rates from secured debt companies are often higher than unsecured loans from high street lenders and much higher than re-mortgages which is one of the viable alternatives; believes that secured debt companies should take up a charter of responsible advertising that only targets those limited niche individuals who would actively benefit from secured debt; and further notes that lowering monthly repayments, which increases the cost of the loans because the interest is spread over a longer period, should never be portrayed as saving people money.

Sponsored by:
Sarah McCarthy-Fry (Labour)