Ed Miliband declares war on Payday Lenders
This week Labour Leader Ed Miliband declared war on payday lenders.
He has asked Shadow Competition & Consumer Affairs Minister and ‘fair credit’ champion Stella Creasy MP to lead Labour’s campaign against loan sharks as part of Labour’s response to the cost of living crisis currently gripping the nation.
Proposals being considered by the Labour Party include:-
1. Capping the rates that pay day lenders can apply to loans
2. Increasing the rate of tax that pay day lenders (such as Wonga) pay on their profits
3. Using the proceeds of the tax on pay day lender profits to help fund ethical savings and lending organisations such as community credit unions.
Bury South MP Ivan Lewis said “Labour is the party that is on the side of people in tough times. Pay day lending and loan sharks have no place in a fairer Britain and that is why I am delighted Bury’s Labour Council has taken such positive steps to roll out a borough wide Credit Union.”