Lucy has backed a cross-party charter to tackle irresponsible payday lending companies. The measures included in the ‘Stop the Payday Loan Rip-off’ Charter would prevent lenders from acting unscrupulously, or lending money to those who can’t afford it. They would also bring an end to hidden charges and limit what kind of advertising payday loan companies can engage in.
Payday lenders, offer short-term loans customers who run out of money while waiting for monthly pay cheques. However, they have been widely criticised for charging vulnerable people sky-high interest rates which can be as much as 5,000% a year.
The Charter 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.
You can sign the charter yourself here.
“I’ve signed the Charter because payday lenders are ripping off millions of people, trapping them in spirals of debt. 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 encourage people to add their voice to the growing calls for tougher regulation of payday lenders by signing up to the Charter online.”