Banks need to “actively refer” struggling clients

Mark Hoban, MP for Fareham, who was appointed shadow financial secretary to the Treasury in 2005, said that lenders need to actively refer struggling customers to organisations such as Citizens Advice and the Consumer Credit Counselling Service.

These organisations offer telephone and web-based services to debt-saddled Brits, which can help prevent them going down the route where they face possible bankruptcy or an individual voluntary arrangement, he stated.

Mr Hoban also said that more needs to be done to teach children in schools about personal finance matters. Young people need to know more about issues such as interest rates, spending and borrowing, he added.

Vince Cable, Treasury spokesman for the Liberal Democrats, has said that while there are some good courses available to a tiny part of the student population, overall standards regarding money education are “abysmal”.