December 15th, 2010
Compass Youth members supported Gavin Hayes and Stella Creasy MP at a Parliamentary rally on the 7th December which called for an end to Legal Loan sharking and supported Stella Creasy’s Consumer Credit (Regulation and Advice) Bill going through Parliament now. The Bill calls for a cap on lending rates and reform of the banking system.
At present the banking system only favours the rich whilst the less well off spiral into debt. Low cost credit isn’t available for those that desperately need it, forcing the vulnerable to use the high-cost door-to-door or payday credit lending market. At the rally speakers and the audience shared countless stories of innocent people who had got trapped by legal loan sharks and forced to pay back money at extortionate rates which they could not afford to do. These people were not irresponsible with money and weren’t borrowing for unnecessary items, these people needed emergency health care or heating for their homes. On a daily basis, people are forced into debt by legal loan sharks who abuse the fact that the mainstream banks do not offer the services which people need.
With the cuts to public services and unemployment set to rise, the amount of people who need access to low cost credit is going to increase. It is a travesty that whilst the Coalition Government is happy to introduce savage cuts they fail to see the importance of reform of the banking system. The bill will be re read in February next year and needs 100 MPs present in order progress through to the next stage of legislation. It is unlikely that this bill will receive Government support however the rally was well attended by MPs from both the Labour and Conservative Party and so with enough publicity and lobbying there is a chance that 100 MPs will turn up. Please lobby your MP and make sure they vote for the Consumer Credit (Regulation and Advice) Bill.
