Posted: 17 October, 2013 at 2:33 pm

John backs charter to stop payday loan rip-off

John backs charter to stop payday loan rip-off

John Healey MP has backed the Charter to Stop the Payday Loan Rip-off.

The Charter calls for tougher regulation of payday lenders and is supported by some of Britain’s biggest debt, consumer and anti-poverty organisations – including Which?, Citizens Advice, StepChange Debt Charity, Church Action on Poverty, and the Centre for Responsible Credit.

MPs from all parties and campaigners are urging the Financial Conduct Authority to back the Charter and introduce tougher regulation of payday lenders to stop millions of people being ripped-off. Over 40 MPs and peers backed the Charter at its launch in Parliament on Tuesday 15th October and members of the public can back the Charter at change.org/paydayloancharter

John said: “I’ve signed the Charter because payday lenders are ripping off millions of people, trapping them in spirals of debt. The Financial Conduct Authority’s proposals for regulation are a step in the right direction, but they don’t go far enough. This is a once in a generation opportunity to get the proper regulation and enforcement of payday lenders that we badly need. If the opportunity is missed then payday lenders will be able to carry on exploiting people.

“I’d encourage people to add their voice to the growing calls for tougher regulation of payday lenders by signing the Charter at change.org/paydayloancharter.

Mr Healey has also supported Paul Blomfield MP’s ‘High Cost Credit Bill.’

The number of people seeking help with payday loan debt more than tripled in Mr Healey’s Wentworth and Dearne constituency last year.

In 2011, debt charity Step Change had 11 (7% of total) clients in the Wentworth and Dearne constituency with payday loans. In 2012, the number had gone up to 39 (20%).

The charity saw 68 people from Wentworth and Dearne with debt problems in 2005 but this had nearly tripled to 198 by 2012.

The average unsecured debt in the constituency last year was nearly £13,000 and the amount owed to payday lenders £1,295.