Adrian Sanders backs campaign to clampdown on the extortionate cost of credit

Adrian Sanders MP has joined a broad coalition of citizens groups, campaigners, MPs and celebrities who have called on the government to end legal loan sharking. Currently lenders can charge any price for credit, which means some loan and credit companies charge £82 for every £100 lent. 

Annual interest rate charges of over 2500% are also now common (despite the Bank of England base rate being just 0.5%). Borrowing at these rates repeatedly tips customers into inescapable cycles of debt and poverty. According to the OFT £16,000 of excess profit is made every hour in this sector.

Co-ordinated by the Compass pressure group, this new campaign coalition have called on the government to ban excessive prices for credit and provide alternative sources of credit through CDFIs, credit unions and a post bank. The government has pledged to clampdown on interest rates for credit and store cards and the campaign believes it should do the same for the high cost credit market.

Thousands of people across Britain are expected to sign an online petition on a brand new interactive website at www.endleagalloansharks.org.uk. The campaign will be targeting millions of people across Britain through using social networking sites such as Twitter and Facebook. 

Adrian said: "It is ridiculous that those on the lowest incomes often have to pay astronomically more to borrow even small amounts of money.  We really need to see a cap on interest rates and a robust system of credit unions and a post bank to provide an ethical financial system for the nation’s most vulnerable.”