Foyle SDLP MP Mark Durkan has backed the “Charter to Stop the Payday Loan Rip-off” which calls for tougher regulation of payday lenders who are trapping millions of people in spirals of debt – including here in Derry and throughout the North.
The Charter is supported by some of the UK’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.
Over 40 MPs and peers backed the Charter at its launch in Parliament and members of the public can back the Charter at change.org/paydayloancharter
Mr Durkan said he was “deeply concerned” by the widespread irresponsible lending which has seen payday loan companies charging annual interest rates of up to 4,000 per cent per year.
He added: “I’ve signed the Charter because this kind of lending – where greedy and unscrupulous loan companies prey on the financially excluded by offering easy credit at extortionate rates – has tipped so many people in Derry and throughout the North into inescapable cycles of debt and poverty.
“Whilst home-credit agencies, moneylenders and loan sharks are not a new phenomenon, in the current economic downturn they have become more prevalent, more pernicious and more profitable.
“The Financial Conduct Authority’s proposals for regulation are a step in the right direction, but they don’t go far enough. This is a once in a generation opportunity to get the proper regulation and enforcement of payday lenders that we badly need. If the opportunity is missed then payday lenders will be able to carry on exploiting people.
“I’d therefore encourage people to add their voice to the growing calls for tougher regulation of payday lenders by signing the Charter at change.org/paydayloancharter.”
