3 October 2013
A shadow minister today said new controls on payday lenders would not stop people “lying awake at night panicking” about debt.
Her attack came as the Financial Conduct Authority proposed changes which could see lenders, some which charge interest of up to 5,000 per cent a year, hit with big fines. The reforms would also prevent loans being “rolled over” and force firms to check people’s ability to repay.
Labour Walthamstow MP Stella Creasy said only a statutory cap on the cost of lending would help. She said: “It’s not rocket science. The reason people get into problems is because of the cost of this credit — because of those high interest rates.”
