100 signatures reached
To: Vince Cable
Stop High Street Loan Sharks
Dear Vince Cable MP,
Please pass legislation to cap loans currently freely available in high streets at 2000% APR to very much lower rates that include charges, interest and fees.
Why is this important?
STOP HIGH STREET LOAN SHARKS
Through floods of tears our friend outlined her debt problem. She had borrowed from friends to make ends meet until payday. When she found paying them back difficult from her small salary she took out loans from high street money shops. New money shops are opening all the time. We get 3% APR on our savings. She was being charged between 2000% and 4000% APR. To default at such interest rates is like chasing a train that has left the station. You never catch up. Worse still she had assembled a “portfolio” of companies hoping to pay off one by another. Could we help her? Having money was useless because none of these companies wanted to provide statements or invoices. A nightmare. Yes. Is it legal? Yes. Slavery? Well yes. Salvation? For her yes through a Debt Relief Order thanks to you the great British taxpayer and the Legal Aid Scheme.
My friend is not alone. 45% of people say they struggle to make it to payday. Millions are vulnerable to these legal loan sharks.
Legislation is urgently needed. France caps the maximum charge for a loan at 133% APR and Germany 200% APR. For more information try www.sharkstoppers.org
Dear 38degrees members please back the campaign to encourage parliament to pass legislation as soon as possible to introduce loan capping in the UK.
