Consumer Minister Jo Swinson summons payday lenders to a showdown
I am pleased Cheshire East are doing this. It shows that the loan shark is not just a City problem. I wonder why the credit union movement has never effectively taken wing in this country as it is a possible antidote to some of these problems. This article tells us:
Stella Creasy, Labour MP and fierce payday critic, tweeted the Consumer Minister: “Your payday lending summit looks interesting – can I come?”
Speaking to the Daily Telegraph, Ms Creasy said: “It’s good to see ministers finally getting round a table with this industry.
“I hope they don’t use this as a cosy chat to keep calm and carry on, but an opportunity to hold these legal loan sharks to account for their broken promises to change their ways.”
Richard Lloyd, executive director at Which?, said: “It’s high time there was a crackdown on irresponsible lending, so we’re pleased to see the Government putting payday loans firmly on the agenda.”
MoneySavingExpert.com creator Martin Lewis welcomed the Government’s move but said it should have acted far more quickly. He said: “Payday loans have become a scourge across our society – enticing desperate people to borrow money at extortionate rates using shifty marketing, and sidestepping responsible lending criteria.
“While I applaud the fact the Government is finally taking this issue seriously, for many of us who see the dangers of this type of short-term credit, there is a bitter taste about how long it has taken to get here.”
Cheshire East Council said it had banned payday websites because it wanted to protect 370,000 residents from “irresponsible lending and harassment”.
Michael Jones, council leader, said: “These companies are targeting vulnerable people.”