Anybody know of loan sharks locally that need exposing?
----- Original Message -----
Sent: Tuesday, April 12, 2011 11:06 AM
Subject: Apology: now it's easier to speak out about the legal loan sharks in Preston!
Now it's easier to speak out about the legal loan sharks in Preston!
There is growing anger that thousands of low-income families are being charged 500% APR for credit - and sometimes much more.
We've set up a special web page so you can quickly and easily write to the letters page of your local newspaper to raise this issue.
This country is unusual in that credit companies can charge whatever they want as long as there are people desperate enough or with few choices. Contrast this with the USA, Canada, France, Germany and many other countries which have legal ceilings to protect consumers from extortionate lending.
For too long, the legal loan sharks in the UK have won the argument about the risks of legal caps on the total cost of credit. Earlier this year, over 400 MPs voted for the new finance regulator (the Financial Conduct Authority) to look seriously into the issue. And 150 of these MPs weren't satisfied to wait for next year when the new body is set up for low-income customers to get the protection which citizens in much of Europe and North America already have.
Oh, and Stella Creasy MP, who initiated the debate, especially thanked all the activists who took part!
To help raise awareness of this issue in your area, I wonder if you could spend a few minutes writing to your local newspaper's letters page. Please visit our special web page now - it will find the details for your local paper, and give you some ideas of what you can write.
With best wishes
Alan Thornton, Campaigns Coordinator
Notes
- We are focusing on capping the total cost of credit rather than annual percentage rates. This ensures that the caps set do not distort the market, and that lenders cannot avoid them by applying high administration fees or repayment charges.
- The End Legal Loan Sharks campaign has the support of Church Action on Poverty, MPs, charities and trade unions.
- The Doorstep Robbery report explains in great detail why we need caps on the total cost of credit and how this legislation can work.
What we are about
Church Action on Poverty works with church and community groups across the UK to make tackling poverty a priority. Our work involves: educating churches about poverty in the UK; enabling people in poverty to speak for themselves; working for policies to eradicate poverty; promoting reflection and action for social justice.
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