An MP had claimed that Government failure to stop reckless lending by financial providers has contributed to people facing unaffordable debt levels, which could lead to some declaring bankruptcy or opting for an IVA.

The East Anglian Daily Times reports that David Ruffley, MP for Bury St Edmunds, has commented that there have been failures in regulating the financial sector. In response to the rise in insolvency figures, Ruffley commented: “This government has a lot to answer for – it didn’t keep a grip on the banks and credit card companies, which let unsustainable credit rip at a totally unsustainable rate.”