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Labour plans payday loan providers levy to finance low-cost credit

Labour plans payday loan providers levy to finance low-cost credit

17 2013 october

Labour has pledged to impose a levy from the earnings of payday loan providers to simply help support lower-cost financing from credit unions and improve cash advice solutions.

If elected in 2015, it might introduce an extra fee on the lenders, which charge as much as 4,000per cent interest, in addition to costs currently paid by all finance businesses.

Shadow company minister Stella Creasy told the BBC it absolutely was time that is”payback these payday lenders”.

Payday loan providers say they offer a service that is valuable their clients.

But Ms Creasy, whom became Labour’s shadow customer and competition minister into the present reshuffle, stated: “some of those organizations are making a million pounds per week.