High Cost Credit Bill

Part of the debate – in the House of Commons at 1:01 pm on 12 July 2013.

Alert me about debates like this

Photo of Kevan Jones Kevan Jones Shadow Minister (Defence) 1:01, 12 July 2013

It is an excuse not to do anything. Those who oppose the Bill, including the Government, have to recognise that this is a real issue, and not only in constituencies such as mine. The hon. Member for Worcester, which is very different from Durham, said that these companies have gone into different areas and are using these aggressive tactics. I looked last night at the list of Stockton payday lenders. Some of their websites are very attractive—bright advertising and so on; clearly that needs to be regulated.

Why can we not act in this country? I think it was my hon. Friend Ann McKechin who mentioned the highly regulated American system. The other system that seems to work is the Canadian one, which can cap interest at 7%, as opposed the rate on similar loans in this country, which is 70% to 74%. If those countries can do that and ban, for example, roll-overs, why can we not do it here? It is about political will, and that goes back to the point I made earlier.

Why do the Government not want to do those things? They have clearly been lobbied extensively by the sector. Some may argue that they have a direct financial interest in raising money from the sector and accepting loans off the individuals involved. They will not introduce the regulation that would help people. If we are looking this issue seriously, we need to ensure that the policy is not only reactive but morally right. Legislation should be introduced, but the Government are putting their vested interests ahead of those of many of my constituents.