Monday, 25 November 2013
Payday Loan rates to be capped
It is not just the high rates of interest that punish borrowers but the unacceptable methods and charges of debt collection – particularly using Continuos Payment Authority (CPAs) to empty peoples bank accounts. The constant advertising and text messaging bombardment urging people to take out these loans targeted at the vulnerable should also be regulated.
Citizens Advice are right to raise the issue of choice in the market and that a cap on credit must be a cap on the total cost of credit. We must also encourage mainstream lenders like the high street banks offer short term loans and continue to encourage the growth of Credit Unions.