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Council backs the Charter to Stop the Payday Loan Rip-Off

December 10, 2013 6:49 PM

A motion proposed by Lib Dem parliamentary spokesman for Hinckley and Bosworth Cllr Michael Mullaney and seconded by Barwell Lib Dem Cllr Mathew Hulbert has got Hinckley and Bosworth Borough Council to back 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.

The Borough Council further agreed to urge the Financial Conduct Authority to back the Charter and introduce tougher regulation of payday lenders to stop people in Hinckley and Bosworth being ripped-off.

Councillors passed a motion to encourage people to support the Charter by signing the online petition at http://www.change.org/paydayloancharter and pledged to promote and support the development of local credit unions and more affordable lending.

Cllr Michael Mullaney Council said:

"We've backed 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.

"We also urge people who are needing loans to consider the local Leicestershire Credit Union, Clockwise a not for profit organisation that charges fair levels of interest, rather than the rip-off ones charged by pay day lenders

"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."