Dudley MP Ian Austin is calling for tougher action on loan sharks saying new measures do not go far enough.
This week the Financial Conduct Authority (FCA) has announced a cap on the cost of credit, limiting the rates payday loan companies can charge to 0.8% per day of the total amount borrowed.
Austin has welcomed these regulations but said that they do not go far enough to tackle the exploitation of local people by payday lenders.
He added that loopholes in the new regulations allow many loan sharks to design products that evade the cap but still take advantage of the most vulnerable people in our society.
The MP has previously backed plans for a levy on the profit of payday lenders to double the availability of low-cost alternatives such as credit unions.
Ian Austin said:
“Money’s tight for a lot of local people but these predatory businesses make their money by piling debt upon debt and creating a personal debt crisis.
“I welcome these new regulations but I think tougher action should be taken to drive payday lenders out of Dudley.
“I want to help responsible lenders like the Castle & Crystal credit union here in Dudley by lowering the cap on the cost of credit.”