Borrowers to enjoy more protection

A new report into Britain's personal debt could lead to even more protection for borrowers.

The report, to be released today, was compiled by Tory peer Lord Griffiths who was a head of government policy during the Thatcher era.

He suggests that the voluntary banking code, which currently regulates lenders and is adhered to by the vast majority, should be replaced by a legal charter. The proposed document would make it law for lending charges to be made even more clear.

The report, which was commissioned by shadow chancellor Oliver Letwin, also recommends that banks share more data with each other, helping to identify and help those borrowers who may be overstretching themselves.

Personal borrowing in the UK now stands at over £1 trillion, or £17,000 per adult, most of this is in debt secured against housing, but unsecured debt is on the rise.