The Welsh Liberal Democrat Assembly Member for South Wales West, Peter Black is urging as many people as possible to sign up to the 'Charter to Stop the Payday Loan Rip-Off' petition which has support from all parties in Parliament and some of Britain's biggest debt, consumer and anti-poverty organisations.
The Charter to Stop the Payday Loan Rip-off is being launched in response to the Financial Conduct Authority's recent proposals for regulating payday lenders. An e-petition has been launched on the campaign website Change.Org where people can back the Charter and add their voice to the growing calls for tougher regulation of payday lenders.
Mr. Black said:-
"Increasing numbers of people are being plunged deeper into debt and despair by the actions of payday lenders.
"The Financial Conduct Authority's proposals are welcome, but don't go far enough in tackling the damage that the payday loan companies cause.
"All too many people end up with rising repayments as a result of being persuaded to roll over a loan, or take out multiple loans to pay back earlier borrowings; all at stratospheric interest rates. The payday lenders then repeatedly raid their customers' bank accounts leaving no money for mortgages, rent, heating, and the like.
"Three things need to happen urgently. First, a realistic cap on should be placed on interest charges. Second, proper checks to make sure people really can afford to repay the loans. Third, the FCA must place a limit to roll overs.
"That is why I am urging as many people as possible to go online and sign up to the petition at www.change.org/paydayloancharter."
Notes for Editors
The Charter to Stop the Payday Loan Rip-off
We believe irresponsible payday lending and other high cost credit is damaging the health
and wealth of our country. Payday lenders are exploiting millions of people across the UK, trapping them in spirals of debt, and the problem is getting worse.
Payday lenders are breaking promises they made in their own customer charter. Self-regulation has failed. We call for effective regulation of payday lenders and high cost credit, which is properly enforced, to:
Stop them giving loans to people who can't realistically afford to pay them back
Stop them repeatedly rolling over loans and creating spiralling debt
Stop hidden or excessive charges