Mulholland Rallies Against New Generation of Irresponsible Lending
March 30, 2010 11:01 AM
Leeds MP Greg Mulholland has been leading efforts in Parliament to stop the practice of irresponsible lending by companies with excessive typical annual percentage interest rates of as much as 2,689%.
Companies offering such extreme rates have begun advertising on television and Greg has expressed concern that customers could be fooled into taking out loans without realising the full extent of repayments.
Commenting Greg said:
"These companies are tricking people into thinking that they offer a convenient solution to bridging the gap before pay day, when in reality they are charging extortionate rates.
"I think the public need to be made aware that such extremely expensive credit represents the migration of loan shark style lending from the doorstep to the internet browser."
2356 percent campaign organiser, Ian Thomas thanked Greg for his support. He said:
"We are delighted that Greg has taken the time to draw attention to the issue of excessive annual percentage rates (APRs) that are being charged by 'payday' lenders in the UK by tabling the Early Day Motion in the House of Commons.
"As a nation we are continuing to pay the price for irresponsible lending practices that encourage inappropriate sub-prime borrowing. No matter what their claims, businesses like Wonga.com, Quickquid.co.uk and Skint.com should not be able to lend even the smallest amount of money at such high costs to consumers. Borrowers should be afforded the kind of regulatory safeguards that savers and investors enjoy, and that means product terms should be fair to consumers.
"The 2356percent campaign is just six weeks old but is growing all the time. The more people take part in the campaign through our Facebook Group the more chance we will be able to shape the future of 'payday' lending in the UK."
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