Call to slash court-imposed interest rates on personal debt

COURT imposed interest rates for debtors unable to pay back loans need to be slashed in half in order to help people out of financial despair, Labour last night warned.

With the slump provoking a huge rise in household debts, Labour front bench spokesman Ciarán Lynch urged Justice Minister Dermot Ahern to act.

Mr Ahern has the powers to reduce the 8% rate which has remained unchanged since it was brought down from 11% in 1989.