MORAY MP SAYS ‘UK GOVERNMENT’S FAILURE IS CREATING MISERY’ Moray’s MP, Angus Robertson, has joined with SNP colleagues in both the Scottish Parliament and the European Parliament to renew a call for the UK Government to intervene on payday loan companies offering short-term loans at astronomical rates of interest. The companies often charge extortionate rates of interest, some eclipsing 4000% APR. At a European level SNP MEP Alyn Smith has written to the European Commission seeking their guidance on the issue who confirmed that it was the competence of each Member State to regulate these companies. SNP MSP for Cunninghame South Margaret Burgess is calling for cross party support for a debate in the Scottish Parliament on the issue in January. Over the past five years the number of credit companies offering short-term loans has increased dramatically and often see an increase in customers over the festive period, with the promise of ‘quick approval’ and access to cash ‘within minutes’. With financial regulations remaining reserved to Westminster local SNP MP Angus Robertson, who is also the SNP’s Westminster Leader is pledging that SNP MPs will keep the issue on the agenda and has welcomed the efforts being made in Europe and the Scottish Parliament to keep up the pressure. Angus Robertson MP said: “ I can understand why many people turn to these companies to meet unexpected bills or to make the money stretch a little bit further but the lack of regulation is a real problem. “ The rates of interest being charged are simply unbelievable, running to an incredible several thousand percent. “ These companies are often targeting the least well off at the most difficult economic times and can lead to families being in almost perpetual rolling debt at an incredibly high cost. “ This has been exacerbated by the banks failing to support ordinary families with more structured debt management which can lead to people seeking unsustainable measures in desperation. “ We must see better regulation from the UK Government in this market place.” Alyn Smith MEP said: “ Over this festive period many payday loan companies are targeting hard hit, vulnerable Scots who are in need of a little extra cash in the run up to Christmas. Far from helping though, these sort of loans often lead people deeper into debt with more severe financial difficulties. “ It is clear that some legal restrictions must be put in place in order to curb the ludicrous rates of interest. This has already happened in many other European nations as well as 35 US States, where there is a limit on the maximum interest these companies can charge, so it is possible. “ The UK Government have consistently failed in regulating the financial markets and have done absolutely nothing to reform the system despite an almost global agreement that change must happen. Their ignorance is now leading to misery for thousands of Scots who are turning to these companies at this time of year. “ The European Commission has confirmed that it is up to Member States to enforce regulation on these companies, and with the Scottish Parliament currently lacking the powers to make such an intervention then it is up to the UK Government. Cameron and his cronies must get their act together and regulate these companies out of existence before more people face financial ruin as a result.” Cunninghame South SNP MSP, Margaret Burgess, who was previously a director of Citizens Advice Scotland and manager of a large Citizens Advice Bureau has lodged a motion for debate in the Scottish Parliament on the issue of payday loans. Welcoming Ms Burgess’ motion Angus Robertson MP continued: “ Getting involved with these companies often just traps people in a downward financial spiral which is hard to escape from. It is high time that the UK Government got their act together and properly protected the most vulnerable in our society.” |
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SNP POLITICIANS CALL ON UK GOVERNMENT TO ACT ON PAYDAY LOANSposted 25 Jan 2012 02:55 by Graham Leadbitter |