BOLTON MP Yasmin Qureshi has backed a campaign to end high street loan sharking and ensure every resident of Bolton has access to affordable credit.

The Consumer Credit (Regulation and Advice) Bill, which was debated in Parliament last week, wants to introduce a cap on the total lending rate that can be charged for providing credit, including any late payment and default charges.

Ms Qureshi said: “With some firms charging over 400 per cent in interest for a loan, it is time the Government stepped in to help protect consumers here in Bolton from these high street loan sharks and help local authorities say no to them when they try to set up shop in our communities.” The Bill also aims to improve access to the valuable service that credit unions provide, by integrating them with the Post Office network.

And there is provision made for increased funding of debt counselling and advice agencies, and greater powers for local authorities to veto licences for high-street credit agencies. The MP expressed disappointment that the Government is refusing to acknowledge the threat posed by legal loan sharks to the most vulnerable.

Government ministers have ignored requests for a meeting to discuss the proposals in the Bill – despite the fact that many of them supported a move to address these problems and that doorstep lenders have expressed support for it.