Councils need to crack down on payday loan companies
I wonder what level of pay day lending takes place in rural communities. I suspect it is not just an urban phenomenon. Let me know if you have any experiences in your localities.
This article explains that in states local government has the power to intervene to address the challenges of high credit lending food for thought?
In some US states it is either illegal or not feasible, given state law, to offer high-rate payday loans. Since 2007, a federal law has also capped lending to military personnel at a maximum of 36% APR.
English councils do not have this power, but the House of Lords recently recommended a cap on interest rates to the government. While we wait for time in the legislative programme, we in local government should take what action we can to restrict these drains on our local economy.
However, any action by a council to block, shut down or regulate payday loan companies more tightly must be accompanied by giving potential customers more options for borrowing and support in avoiding debt and poor choices in the first place.