An MP is attempting to ban loan companies from charging exorbitant interest rates . MP for Livingston, Jim Devine, has called for lenders to cap charges to avoid poor families ending up in debt . The MP is set to table a House of Commons bill next week, which will call for interest rates to be limited to five per cent above the Bank of England base rate. The Labour MP’s bill has cross-party support, though the government have previously said that they do not support a cap.
The motion follows Mr Devine’s discover of interest rates of nearly 200 per cent, with the Provident Personal Credit company charging an APR of 183 per cent, which would result in a repayment of £804 on a £300 loan in just over a year. The bill comes in the lead up to Christmas, with Mr Devine fearing that the additional festive costs could force people to take out high interest loans . Mr Devine said, ‘At a time of the credit crunch, it’s time to crunch the credit charges. Many people getting these loans are desperate to escape loan sharks, but the interest rates they are being charged by legal lenders are almost as much’.
MP Calls for Interest Rate Cap on Loans
MP Calls for Interest Rate Cap on Loans
Fri, 07 Nov 2008
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