Loan sharks need regulating, East End MP says

MORE regulation of loan sharks who target the poor and then charge exorbitant interest rates is needed, an East End MP has said.

Jim Fitzptrick, MP for Poplar and Limehouse has joined a group of fellow politicians who are campaigning to introduce legislation which will cap high-cost loans.

The Labour MP said: “I’m voting for this motion because it’s time we did something about unsecured lending.

“The rates these paydays lending, home credit and hire purchase companies charge are astronomical and as there’s little competition they get away with it.”

The issue was discussed in the Commons on February 4 but the vote has been delayed until October.

The proposal is to cap the costs of credit rather than interest rates to make sure lenders can’t evade it.

Action has been taken against unscrupulous lenders in other European countries and in America.

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Almost 50 MPs have signed up to support the motion.