MP backs charter to stop pay day loans "rip off"

 

* Susan Elan Jones MP signs the charter.

 

Susan Elan Jones MP has backed the Charter to Stop the Payday Loan Rip-off and has called on local residents to do likewise.

 

The charter calls for tougher regulation of payday lenders and is supported by some of Britain’s biggest debt, consumer and anti-poverty organisations – including Which?, Citizens Advice, StepChange Debt Charity, Church Action on Poverty, and the Centre for Responsible Credit.

 

MPs from all parties and campaigners are urging the Financial Conduct Authority to back the Charter and introduce tougher regulation of payday lenders to stop millions of people being ripped-off. Members of the public can add their support at change.org/paydayloancharter 

 

Susan Elan Jones MP said: “Enough really is enough on this issue. It is totally wrong how in this country we let payday lenders  rip millions of pounds off people, trapping them in spirals of debt. We need proper regulation that sorts this out once and for all, or the misery will continue. 

"The Financial Conduct Authority’s proposals for regulation are a step in the right direction, but we need to go much further. Australia, many European countries and lots of US states have shown this can be done and it's high time we did it over here.

 

“I’d encourage every local resident who cares about this issue to call for tougher regulation of payday lenders by signing the Charter at change.org/paydayloancharter.”

 

The full text of the Charter to Stop the Payday Loan Rip-off reads:

We believe irresponsible payday lending and other high cost credit is damaging the health and wealth of our country. Payday lenders are exploiting millions of people across the UK, trapping them in spirals of debt, and the problem is getting worse.

 

Payday lenders are breaking promises they made in their own customer charter. Self-regulation has failed. We call for effective regulation of payday lenders and high cost credit, which is properly enforced, to:

·    * Stop them giving loans to people who can’t realistically afford to pay them back

 

·    * Stop them repeatedly rolling over loans and creating spiralling debt

 

·    * Stop hidden or excessive charges

 

·    * Stop them raiding borrowers’ bank accounts without their knowledge and leaving them in hardship

 

·    * Stop irresponsible advertising and instead provide clear and transparent information

 

·    * Require lenders to promote free and independent debt advice, and ensure they co-operate with other services to help people get out of debt.

 

* Those behind the charter say: "We also want action to support the growth of credit unions and other forms of more responsible lending; we want banks to increase the availability of credit to people on low and middle incomes: and we want new research on capping the total cost of credit undertaken now."

 

You can download a copy of Church Action on Poverty and the Centre for Responsible Credit’s joint report ‘Stopping the Payday Loan Rip-off’ at http://www.church-poverty.org.uk/drowningindebt/paydayloanreport/