Responding to today’s Government announcement of another voluntary code for payday lenders Stella Creasy MP said:
“Yet again this Government has shown it is failing to protect British consumers from the antics of these high cost credit companies. They are causing misery for so many cash strapped families but this code is simply a rehash of current lending rules, with very few teeth to really help it make a difference to the problems people experience with these legal loan sharks. It’s also voluntary so there’s no requirement for any company to abide by it, and even if they do claim they’ll follow it there’s little detail about the monitoring that could be done to check companies stay within these rules or any sanctions for them if they don’t. When most of the companies this code covers operate in other countries where there are caps on the costs of lending and real time credit checking, I’m disappointed they still resist these better forms of consumer protection for their customers here in the UK.
I’m now contacted on a weekly basis by consumers from across the country who are tearing their hair out trying to sort out debts with these firms, having got into financial difficulty because of the costs of borrowing in this way – they need more than fine words and the promises of an industry that has repeatedly shown it cares little for the people whose lives it is damaging. They need action – that’s why we are launching our campaign pack to show that even if the Government won’t act to stop these problems, we can and will do our bit to protect our communities from legal loan sharking.’
The campaign pack to help protect British consumers from the legal loan sharks will be launched in Walthamstow on Thursday 26 July 2012 with the Leader of the Labour Party Ed Miliband MP in attendance. For more details please contact the office of Stella Creasy on 020 8521 1223.