MP is going after legal loan sharks

2 November 2010

loansharkLoan sharks! Beware! Because MP Stella Creasy is coming after you!

Despite the vaguely silly name, the former Walthamstow councillor believes that credit companies have got away with wrecking people's lives for too long. So she's asking the Government to back her up and act before the spending cuts to help people struggling with debt so they don't end up at the mercy of loan sharks and a potentially disastrous debt cycle.

"I'm very worried that the Government don't get the real problem," Stella says. "The government has to understand that action is needed now to address the high cost of lending which exploits some of the poorest people in our communities who can least afford the charges doorstep lenders set."

The MP is introducing a Ten Minute Rule Bill which is designed to ensure that everyone – and not just those with good credit ratings – can get affordable credit and, most importantly, is protected from exploitation by legal loan sharks.

It's a big problem too, with an estimated 3 million people stuck in the expensive debt. Charges can be as much as £82 for every £100 borrowed. What Creasy hopes is that the Bill will introduce a cap on the total lending rate that can be charged for providing credit, including any late payment and default charges, which will prevent extortion by companies wanting to fleece customers.

She also wants to improve access to the credit unions by integrating them with the Post Office network as well as increasing the funding given to debt counselling agencies.

"It's frustrating that my requests for a meeting on this issue have been completely ignored," Stella says. "Five years ago, many MPs who are now government ministers – including Nick Clegg, Danny Alexander and Ed Davey – signed an Early Day Motion which sought to address extortion by doorstep and payday lenders. I want to know why they have changed their minds since then."

8 comments

  • Martin
    I'm all for getting rid of loan sharks. Bastards the lot of them. However, why does she think that people without a good credit rating should have an automatic right to affordable credit? Shouldn't people with a bad credit rating simply have a right to be told to live within their means? As opposed to pissing their money away on fags and lottery tickets for example.
  • Willy-wonka
    Can't afford it don't buy it.... simples... Don't think loan sharks can ever be regulated.
  • PokeHerPete
    BUT I NEED MY NEW BECK & HERSEY TRACKSUIT WHICH IS £100 BUT MY DOLE CHEQUE DOESN'T COME IN TILL NEXT WEEK. I KNOW BECK & HERSEY IS AS MUCH ESTABLISHED BRAND AS MY LEFT NUT BUT I NEED THE GEAR TO LOOK GOOD AT THE BACK OF THE BUS. PLUS I HAVE TO ACTUALLY PAY FOR MY BUS PASS NOW I CANT GET FAKE OR USE OUT OF DATE ONES BECAUSE THE BUSES HAVE THESE SMART THINGS ON THEM NOW, CRIMINALS. I THINK I NEED TO HAVE ANOTHER KID TO BE ABLE TO AFFORD ALL THIS!! PS WROTE AT THE APPLE STORE PSS GOT A SPARE FIVER?
  • darkspark88
    outlaw the leg breaking loan-sharks but the loan sharks exist for a reason. The people that borrow money from them. SHOULDN'T be borrowing money. This type of bill will just increase the costs of borrowing for those that do have good credit ratings...
  • LanceVance
    Lets all start working on a barter system. They can f orf with their "money" then.
  • Not G.
    Typical BW-tit commentators on this article. This site seems to attract a lot of pro-business, anti-consumer idiots. Very strange for a site that is orientated towards consumer rights.
  • ryanizzle
    You get what you deserve if your lifestyle is above what you can afford.
  • Big p.
    @Not Mof Gimmers To be honest, I first found this site because it ran an article about putting mints in vaginas'. I never really twigged it was consumer rights. True story.

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