Dudley MP Ian Austin has backed plans for tough new controls on payday lenders blighting high streets in the Black Country.
Labour Leader Ed Miliband yesterday set out plans for the levy which would raise millions of pounds to pay for a doubling in the funding available to low-cost alternatives such as credit unions.
Austin said that the rising cost of living was causing a “personal debt crisis” with a third of payday loans taken out to cover heating costs.
He added that the policy would “protect the most vulnerable people in our society from the worst of exploitation by payday lenders.”
Ian Austin MP said:
“The growth of payday loans shops is an absolute disgrace. I want to drive the payday loan shops out of Dudley High Street.
“Money’s tight for a lot of families in Dudley at the moment but these predatory businesses make their money by piling debt upon debt and making poor people poorer.
“I want help for responsible lenders like the Castle & Crystal credit union here in Dudley, and I’m pleased that Ed Miliband plans to do just that.”
Mr. Miliband said:
“The cost of living crisis afflicting millions of Britain’s families is so bad that it is creating a personal debt crisis too.
“For too many families the end of the month is now their own personal credit crunch.
“We would cap the cost of credit, halt the spread of payday lenders on our high streets and force them to fund the credit unions that can offer a real alternative for people in desperate need.”