“Stop loan sharks” says John Battle MP

John Battle has put down a House of Commons motion calling on the Government to clamp down on loan sharks.

"We need to deal with debt on our doorstep," said John. "Most people borrow money at some time in their lives, for example with credit cards and mortgages, and it shouldn't be a problem. But poorer people sometimes have to borrow small amounts just to cover the basics and find most lenders unwilling to give credit - so they are often faced with unscrupulous companies or loan sharks offering extortionate rates of interest.

"I saw a flyer a constituent had had through their door last week offering loans which worked out at 425% APR - compared to the 12% or so that a building society might offer.

"I am calling on the Government to clamp down on loan sharks, and to reform the Social Fund to make it easier for people in need to get loans to cover a crisis.

"Another part of the answer is credit unions - I'm a member of Bramley Credit Union, I save money with them each month and it's there for Bramley people to borrow at a fair rate, even if the banks would turn them down. But I'd also recommend Leeds City Credit Union. Credit unions have taken off in Leeds in the recent past. A real Government boost to get credit unions more established and to address the financial exclusion of those struggling on a low income is now needed.

"In other words, if the most vulnerable people in our society had better access to affordable credit and savings, they wouldn't fall prey to loan sharks."

John welcomed a mass lobby of Parliament this week by Debt on Our Doorstep, a coalition of charities including Oxfam, UNISON and Church Action on Poverty. Find out more at Debt On Our Doorstep.