Members of the House of Lords: Support an interest cap on pay day loans
  • Petitioned House of Commons and House of Lords

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House of Commons and House of Lords

Members of the House of Lords: Support an interest cap on pay day loans

    1. Petition by

      Judy and Arthur Breens

      London, United Kingdom

Update: Huge progress on payday lenders -- THANK YOU!

Yesterday the House of Lords forced the government to rewrite a part of the Financial Services Bill to allow a cap to be imposed on the interest rates charged for payday loans.

I'm keeping the petition open until we know for sure that the cap is definitely going to be made law - so keep sharing and signing.

Thanks for all your support - I'm overwhelmed by the response!

 

 

Our foster daughter Karen (not her real name) is a hard worker. She has been ever since she left school at 16. Despite having special educational needs, she set her mind to getting a job and working to support herself.

But things have not always been easy for Karen. When she left our care she slipped into a cycle of debt that she couldn't afford to support. 

That was when she turned to a so-called pay day lender.

The sky-high interest rates mean that while it is possible to borrow to pay off debts it becomes quite impossible in turn to repay those loans. Karen used up to eight companies in an unrelenting chain of borrowing. £100 quickly became £1000 and Karen could no longer track who she owed money to. When the threatening letters and phone calls started she was forced to leave home and started sleeping at friends houses - moving from sofa to sofa. This means she’s sometimes late for work and the job she’s worked so hard for is at risk. All for a loan of £100.

When I heard about all this, I tried to do what I could to help. But even with Karen’s authority these companies were almost impossible to deal with. The debts had been sold, the start dates almost untraceable, and every day the interest rates continue to increase. It was only the support of Karen’s bank and a solicitor that we were able to get everything on track. Karen was lucky - she had a support system. Others don’t - they are easier prey for these companies.

I’ve been working with Movement for Change to tackle legal loansharking and give practical support to the fairer alternatives. Find out more here.

On Wednesday this week the House of Lords will be asked to vote on something that could stop others being hit like Karen was hit. Some of these firms charge up to 16,000% - and Lords could decide this Wednesday to cap interest on these loans at a far more affordable level. That’s why I’ve started this campaign to urge the Lords to vote for this amendment to the financial services bill.

I know Karen should never have got into debt and I know that people should take responsibility for their actions. But at a time when it’s hard for many of us to make ends meet these companies are exploiting the very poorest just to make huge profits.

Please join me in trying to make a difference.

Arthur

To:
House of Commons and House of Lords
On Wednesday you have the chance to cap the interest rate on pay day loans.

These companies are exploiting the poorest and most vulnerable to make huge profits at a time when many are finding it hard to make ends meet.

Please support Arthur's campaign to keep these lenders in check.



Sincerely,
[Your name]

Recent signatures

    News

    1. Reached 50,000 signatures

    Supporters

    Reasons for signing

    • Lucy Goldsmith BRADFORD, UNITED KINGDOM
      • 6 months ago

      Let's not drive people further into poverty.

      REPORT THIS COMMENT:
    • Steven Pedlar MARKET RASEN, UNITED KINGDOM
      • 6 months ago

      The interest rates on payday loans are iniquitous and the vulnerable need to be protected from unscrupulous lenders.

      REPORT THIS COMMENT:
    • Mark Spooner SOLIHULL, UNITED KINGDOM
      • 6 months ago

      Dismay at lack of action to clamp down on payday loan companies that are ripping off those that can least afford it

      REPORT THIS COMMENT:
    • Chris Harvey NORTH ROAD, UNITED KINGDOM
      • 6 months ago

      Because these companies are operating unethically and feeding cycles of deprivation, causing harm to the national economy.

      REPORT THIS COMMENT:
    • Neil Thomas PETERBOROUGH, UNITED KINGDOM
      • 6 months ago

      Bring back loans sharks. Pay loans companies prey on the desperate and they should be properly regulated, and a realistic cap placed on the amount of interest charged, fees etc.

      REPORT THIS COMMENT:

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