Payday Loan Companies

EDM number 299 in 2012-13, proposed by Graham Stringer on 02/07/2012.

That this House notes the warning by the trade union, Unite that more than 80 per cent of British workers are unable to make their wages last the month; further notes the rise in payday loan companies such as Wonga, QuickQuid and Money Shop since the economic downturn; is concerned by Unite's findings that one in eight workers regularly turned to payday loan companies to make ends meet; deplores the exorbitant rates of interest charged by payday loan companies, which are typically 1,200 per cent APR and can reach 4,200 per cent APR; believes that such rates are likely to trap borrowers in a spiral of debt; is concerned that Citizens Advice Bureaux have seen a fourfold increase in the number of people with payday loans seeking help; recognises that the harm that such loans do to individuals has a further knock-on effect on the UK's high streets; further deplores the fact that some payday loan firms have even been known to use threats; supports credit unions as a civilised alternative to payday loan companies; further notes that the majority of voters believe a cap should be imposed on the total costs that can be charged by payday loan companies; and calls on the Government to impose such a cap.

This motion has been signed by a total of 52 MPs.