MP: Con-Dems have let legal loan sharks 'off the hook'
Wednesday 06 March 2013
Printable
EmailA Labour MP warned legal loan sharks who prey on Britain's poorest people have been "let off the hook again" by the Con-Dem government.
Stella Creasy MP accused the government of "ducking the real issues" after Business Minister Jo Swinson unveiled new rules on how and when payday lenders like Wonga can advertise.
Ms Creasy joined trade unions in calling for the government to put a cap on the interest rates payday lenders are allowed to charge, which can exceed 2,500 per cent APR.
Unite general secretary Len McCluskey said payday lenders were cashing-in on "the misery of Tory economics."
That call came after the Office for Fair Trading (OFT) issued Britain's 50 biggest payday lenders with a 12-week warning to clean up their act or risk losing their licence.
The OFT warned the government that "irresponsible lending is not confined to a few rogue payday lenders."
In response, Ms Swinson said a new Financial Conduct Authority will from April 2014 have the power to cap interest rates but added: "The evidence at the moment doesn't point to that being the best solution."
If you appreciated this article then please consider donating to the Morning Star's Fighting Fund to ensure we can keep developing your paper.
Editorial
Iraq ruling is no vindication
Defence Secretary Philip Hammond believes himself vindicated by the High Court ruling that his Iraq Historic Allegations Team (IHAT) is independent.
Features
Turmoil set to continue
A look at the causes and possible outcomes of Silvio Berlusconi and his right-wing coalition's lead in the polls.
Our government has put us at risk
Attacks such as yesterday's horrific murder in Woolwich didn't happen before the 'war on terror.' It's time we recognised the consequences of the conflicts we've unleashed