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Parties agree over pay day loans

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LIBERAL Democrat members of Warrington Borough Council have given their support to a motion designed to clamp down on “pay day” lenders.
Cllr Ian Marks (pictured), leader of the Lib Dem group said: “We are happy to go along with this motion and I am sure it would have the widespread support of the public. Lib Dems in Parliament have campaigned for controls on legal loan sharks and we’re delighted this is now going to happen.”
The motion was proposed by Labour’s Cllr Maureen McLaughlin who said continuing rises in food and fuel prices were hitting families on low incomes, with more than 60 per cent taking out payday loans to pay for household bills and essential items.
Cllr Marks said the Government was changing the law to allow curbs on payday loan interest rates.
He said: “In early November, Treasury Minister Lord Sassoon, told the House that “We need to ensure that the Financial Conduct Authority grasps the nettle when it comes to payday lending and has specific powers to impose a cap on the cost of credit and ensure the loan cannot be rolled over indefinitely should it decide, having considered the evidence, that this is the right solution”
Cllr Marks said a new regulator would have clear powers to stop exorbitant interest rates being charged.
“We sincerely hope this will bring some much needed relief to people who have suffered at the hands of unscrupulous money-lenders.”


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  2. Silver Surfer on

    About time too. Just a pity that an alternative has not been put forward by the council. They could do so much more to prevent these situations arising by publicising local Credit Unions in the Warrington Borough, especially as they have close links with most of those struggling.

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  6. Geoff Settle on

    Apologies Silver Surfer – we promoted Cedit Unuions just over a year ago which is why I joined in December 2011 and I thought that we had put out press releases. However seraching this web site and other local ones I can’t find a reference – so we need to do more. Poulton North Labour did feature NEWCU and the Co-operative in its election material in May 2012 and I remember attending the campaign by Affinity Sutton Trust in the summer when an anti-loan shark walls was unveiled – if you can get down to the kick about area which is near Bennetts Rec then you will see a very colouful graffittied wall – which some months later still looks brilliant. I agree we need to do more to promote the work of credit Unions and if possible get more press coverage. We need to get the message out their. Thanks for raising the issue.

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