End Legal Loan Sharks

I support the campaign to end legal loan sharks. There are company's acting legally which can charge interest rates up to 60,000% APR.

The campaign is summed up here - 'Affordable short term credit is needed more than ever to help make ends meet as people face huge cuts in public services, reduced working hours, stagnant wages, and unemployment. Despite this because millions on lower and middle incomes are not catered for by many High Street banks, they have no choice but to borrow at usury rates. As a result, those most in need often pay the highest rates to obtain credit. Around 3 million people use high cost door to door loans which often charge £83 in interest and collection charges for every £100 borrowed.'

I have sent the email below to the Prime Minister and I would urge people to do the same, click here to sign the email:

Dear Prime Minister

The UK now has one of the highest levels of personal debt in the world - in April this year the British people owed over £1,460bn in private debt.Irresponsible lending can cause debts to become unmanageable: some loan and credit companies registered with the FSA are charging annual interest rates equivalent to over 2500% (despite the Bank of England base rate being just 0.5%), whilst some door to door lenders charge up to £82 for every £100 borrowed. Borrowing at these rates repeatedly tips customers into inescapable cycles of debt and poverty. High debt repayments are linked to rent, council tax and utility arrears, constraints on job seeking behaviour, poor diets, cold homes, and mental and physical health problems.This is legal loan sharking, a national scandal which must be stopped. Whilst you have rightly pledged to cap excessive rates on credit, store cards and overdrafts , according to a recent YouGov poll commissioned by Compass and Trident Reach 7 in 10 believe you must go further and adopt the policy of lending rate caps for all consumer credit, as well as give more support for alternative sources of affordable short-term credit through a Post Bank, Credit Unions and Community Development Finance Initiatives. The policy of lending rate caps coupled with increasing access to affordable credit would enable the poorest households to become financially independent, helping to provide a route out of personal debt, encourage saving practices and generate demand for local businesses in our deprived communities. It would also reduce the demand for social and welfare services and therefore relieve pressure on public spending.We urge you to take action.Kind regards