Islwyn MP Chris Evans has called for new laws to tackle the growing problem of financial exclusion.
A Ten Minute Rule Bill tabled by Mr Evans aims to ensure that banks are held accountable for their lending activities – currently some nine million people in the UK who do not have access to credit from banks.
The Banking Disclosure and Responsibility Bill would require banks to produce a report specifying who they are lending to, in order to find out about those who are excluded from financial products from mainstream banks.
Mr Evans said: “For too long, financial exclusion has been a scourge on Valleys communities. The economic conditions that have come around as a result of the financial crash has caused more hardship for families and doorstep lenders and illegal loan sharks have found their business picking up.
“Households with no bank accounts face real challenges getting access to essential services such as energy, water, land lines and internet.
“The Bill is an opportunity to build trust in our banks, allow them to take a lead in the battle against financial exclusion and reduce the risk of another financial collapse.”
I'm not sure what it is that he is hoping to achieve. I should have thought it obvious that those with a poor credit history will have difficulty borrowing from a mainstream lender such as a high street bank. However, regardless of credit history it should be possible for people to open basic bank accounts. Only those with a history of fraudulent activity will face real problems.