February 7, 2006

The SNP yesterday have called for credit firms who send unsolicited mailshots to people living in poor areas to be regulated by the financial code of conduct.

Scotland has an escalating bad debt crisis and is currently top of the UK’s debtor league. Scots on average have unsecured debts of £8000, which is 31% higher than the rest of the UK.

It is thought that although banks and credit companies use data to find customers, not enough is done to ensure that the customer has the ability to repay their debt.

Kenny MacAskill, the SNP justice spokesman, said, "Many people receive offers of platinum gold through the mail and at the same time get sent details about items like cars for sale. Obviously people have to take personal responsibility for their actions, but we are up against companies with sophisticated advertising campaigns who are accessing data to find their target groups.

"Scotland is slowly sinking in a sea of debt and yet our government is incapable of addressing the root of the problem. The Scottish Parliament has to deal with the consequences of debt and must be able to deal with the causes of it."

In earlier news reports we have mentioned that consumer debt is becoming an every increasing problem and that after Christmas debt advice groups were inundated with calls asking for advice on debts and their inability to pay. In 2004 consumer debt reached a record £1 trillion