Jo Stevens welcomes Labour’s promise for a new levy on payday lender profits, to tackle the high interest rates of Cardiff’s legal loan sharks
Ed Miliband today set out how the next UK Labour Government will raise millions of pounds through a levy on the profits of payday lenders – money which will be used to give a huge boost to low cost alternatives in Wales such as credit unions.
Welcoming today’s announcement, Labour’s Cardiff Central candidate Jo Stevens, said:
“Cardiff is already burdened by a huge number of payday lenders, and as Christmas nears it’s more important than ever that people are aware of the alternatives to legal loan sharks. People are turning to payday lenders for help and are charged extortionate interest rates and getting into a spiral of debt. The Welsh Labour government has led the way on supporting and encouraging participation among credit unions and alternatives in Wales, and a tough new levy on payday lenders helping to increase funding for those alternatives is very welcome.
This Coalition has failed to protect vulnerable people and done nothing to change payday lenders’ behaviour: a Labour government will take action to prevent these people from being exploited.”