Consumer Minister and Bradford South MP Gerry Sutcliffe has launched a bitter attack on credit companies which exploit vulnerable

borrowers.

Speaking at the British Bankers' Association's annual conference, Mr Sutcliffe said there was no room in the credit market of the future for irresponsible lenders.

And he called on honest lenders to continue to work with the Government and consumer groups to implement reforms in the Consumer Credit White Paper - the biggest shake-up in consumer credit for 30 years.

"Consumers themselves have to take their share of responsibility when it comes to credit agreements," said Mr Sutcliffe.

"But there is a vital need for honest credit companies to ensure they are sharing the fullest possible information to avoid lending to those who are already struggling with credit.

"We are all aware of the hopefully few extreme cases where pensioners have been offered credit wildly out of proportion of their income. And situations where consumers have felt themselves driven to tragic measures to deal with debts.

"These cases are rare, but all too regularly people come to me, my colleagues in the House of Commons and debt advisers around the country with tales of too-easy credit, leading to over-indebtedness."

Mr Sutcliffe said measures in the Consumer Credit White Paper aimed at improving transparency and reducing confusing jargon would help consumers make better-informed choices about credit.

A spokesman for Bradford-based Provident Financial, which specialises in lending small sums, often to low-income borrowers who would otherwise not be able to get credit, welcomed the comments.

He defended the firm's policies and said it did not mislead customers about how much they would ultimately pay.

"We welcome the points raised by Gerry Sutcliffe, particularly with regard to responsible lending and improving the transparency of credit services to consumers," he said.

"At Provident Financial our service is totally transparent. Home credit is one of - if not the - most transparent credit products on the market. The whole cost of a home credit loan is set out clearly for customers up front and there are no hidden surprises or additional charges even if the customer misses or is late with repayments.

"We have a long and very positive track record of responsible lending practice and our customers regularly tell us they value the service we provide."