MEP in action call over pay day loans
8:54am Tuesday 12th February 2013 in News
BOLTON Euro MP Paul Nuttall has written to the borough’s three MPs urging them to take action over pay day loans.
The move follows a recent report by insolvency trade body R3, which claimed that potentially five million British adults are tempted to take out a short-term loan over the next six months The UKIP deputy leader, who represents the borough in the European Parliament, said he has written to every MP in the North West to try and enlist support for compulsory regulation, because he said that at present the government is waiting to see if pay day lenders adopt voluntary codes of conduct.
He said: “I feel really strongly about these loans and the rate of interest charged for them.
“They may be short-term but they are high cost and can result in alarming interest rates of more than 1,500 per cent.
“If people are considering taking out such a loan I urge them to read the small print very carefully first and not make a hasty decision.
“These loans snare people into cycles of debt and however desperate they are now, their situation will only worsen with more debts they cannot pay.”