|MEDIA RELEASE: Consumers and lenders work together to restore confidence in credit markets
|Media release: the Centre for Economic & Social Inclusion
Embargo: 00h01, Thursday 13 November 2008
CONSUMERS AND LENDERS WORK TOGETHER TO RESTORE CONFIDENCE IN CREDIT MARKETS
Two hundred experts on credit and debt from over twenty-five countries will gather in London today to discuss how confidence can be restored to the world’s credit markets.
The conference, to be held just days before world leaders meet at a global crisis summit, has been called by the European Coalition for Responsible Credit, and organised by the Centre for Economic & Social Inclusion with support from Citi and GE. Delegates will debate a conference declaration (the London Declaration) setting out the next steps that governments across the world now need to take.
Describing the failure of free market approaches as ‘self-evident’ in the light of events in the past few months, the current draft declaration calls for a combination of immediate measures to support households in difficulties with mortgage and credit payments, and steps to strengthen the role of consumer agencies, including supporting stronger partnership development between consumers and lenders to rebuild trust.
Proposed changes include insisting that lenders restructure mortgages rather than seek repossession, and placing banks under an obligation to provide access to ‘responsible credit’ and report publicly on their performance. Calls will also be made to establish a global network of consumer agencies to link into governing and regulatory bodies, including the Financial Stability Forum.
Professor Udo Reifner, Chair of the European Coalition for Responsible Credit, commented:
“Our governments failed to listen to consumer concerns about the way that credit markets were operating. Now they are too focused on the needs of banks, and not households. We call for a new approach to credit regulation, with consumer involvement at all levels. It is unacceptable for investors and bankers to be protected whilst the causes of the crisis – unregulated and extortionate credit remain – in place.”
NOTES TO EDITORS
1. The conference – Responsible Credit 2008 – takes place at the New Connaught Rooms, Covent Garden on 13-14 November 2008. Full details, including a link to the current programme, are available from the Centre for Economic & Social Inclusion website at http://www.cesi.org.uk/events/current_events/responsible_credit_conference.htm
2. The discussion over the London Declaration has been organised by the European Coalition for Responsible Credit, and the UK’s Centre for Economic & Social Inclusion. The conference is being supported by Citi and GE.
3. For press passes to the conference, please e-mail Kylinda Chilcott at email@example.com with the subject heading ‘press pass request’
4. Professor Reifner, ECRC Chair, is available for comment on +49 40 3096910
5. Damon Gibbons, Head of Policy, Centre for Economic & Social Inclusion is available for comment on + 44 (0) 796 186 9473
6. The full text of the draft London Declaration is available at:
Created: 10/11/08. Last changed: 01/06/10.
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