sharkResponding to figures released by the Money Advice Trust today showing a 4,000% increase in the number of complaints about payday lenders since 2007, Stella Creasy MP said;

“These shocking figures from the Money Advice Trust are yet more proof of the problems now facing millions in our country. It is a shameful reality that many are being pushed into taking out payday loans as they cope with the pressures on their pockets from the rising cost of food, rent and travel. With 20,000 calls from struggling payday loan customers being taken in 2012 these numbers speak for themselves in highlighting the sheer number of British families now suffering at the hands of the legal loan sharks.

Whilst many know just how toxic these loans can be, they find themselves with no alternative but to accept credit with interest rates of 4,500% or more – which half of all borrowers turn out not to be able to repay – with 57% missing a payment. Despite review after review and recommendation after recommendation, these companies are continuing to get away with taking British consumers for a rough ride as the Government has yet to take decisive action to stop this spiral of debt.

The question is just how much more evidence of difficulties the public are facing from these companies must we have before the Government steps into protect British consumers. The rapid growth of this industry is only set to continue with the continuing cost of living crisis in our country. That’s why The OFT must say now what is an acceptable cost of credit as well as ensure all companies do real time credit checks and stop abusing continuous payment authorities so that 2013 does not see even more people getting caught by the legal loan sharks.”

For more details on the #Sharkstoppers campaign to tackle legal loan sharking in the UK speak to Jon Chambers in Stella Creasy MP’s office on 020 8521 1223.

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