Nia Griffith MP is renewing calls on the government to clamp down on the interest rates charged by legal payday loan companies. Although Nia spoke up for Labour’s frontbench in support of a private member’s bill brought by Stella Creasy MP in 2011 which sought to curb interest rates and other charges made by payday loan companies, the Conservative-LibDem Government refused to give the bill the backing it needed to become law.
Speaking last week on Radio Cymru’s investigative programme Manylu, Nia Griffith said,
“The Government should stop this exploitation by payday loan sharks, by limiting the amount of interest and other fees that these companies charge. With food and fuel prices rocketing, many households in Llanelli are really struggling to make ends meet. Many of those who cannot get credit any other way, particularly low income families and young people, find themselves forced to turn to pay day loan companies. Yet again a recent OFT report has highlighted the problems. There is a chance at the end of this month for the House of Lords to amend the Financial Services Bill to help tackle legal loan sharking. Labour Lords have said they will support this change to the Bill, but we need the Tory and LibDem Lords to back it too. We need action from government, not indifference.“