With the support of Wrexham MP Ian Lucas, leaders from TCC (Together Creating Communities) are on a campaign to stop Payday loan lenders taking advantage of the poor.
Representatives from TCC travelled to Westminster to explain the impact high interest credit is having on people in North Wales, urging MPs to bring in a cap on the cost of borrowing money. Currently interest rates on payday loans can be almost 6000% APR, and it is often the most vulnerable who get into difficulty.
Leaders also met with representatives from the Money Shop, who provide payday loans online and in stores. TCC leader Eulina Harper said “We are pleased that the Money Shop is working to improve their own practices, and we hope that a new code of practice which is being brought in will improve standards across the industry.
“However, we are urging the Government to do more: some people see payday loans as their only option in an emergency, and it is important that they don’t end up paying exorbitant fees.”
TCC is promoting the North Wales Credit Union, who as well as offering low cost loans, encourage people to save, so that they have some funds built up for next time there is an emergency.
Speaking afterwards, Mr Lucas said: “There is a lot of legitimate concern about the actions of some payday loans companies, and parts of the industry certainly do need further investigation.
“However, companies should also be commended when they are willing to enter into dialogue. I was pleased that Money Shop were very much willing to meet
with TCC and to answer their questions, and I think the meeting was productive.
“It is clear that the issue of payday lending will remain controversial, and I continue to back calls for further regulation of the industry.”
Top: Leaders Gareth Davies Jones and Eulina Harper in Westminster.
Above: Leaders Eulina Harper and Maria Pizzoni with Andrew Bryan, the Money Shop Marketing Director (L), Caroline Walton, the Money Shop Corporate Affairs Director (R) and Ian Lucas MP.