Stella Creasy explains why she has been campaigning for more stringent regulations to be imposed on payday loans.
In this video she also seems to have changed her stance on demanding an interest rate cap. The MP for Walthamstow says she now wants a total cost cap – a limit on the total cost including interest, admin, transfer charges etc.
We’ve been saying for months that a cap at around £25 per £100 borrowed per month would be a far better system rather than dealing with the APR which doesn’t make any sense when applied to these short term loans.
One thing missing from the video is any talk of an alternative form of credit for all those constituents that actually find the services of payday lenders useful when wanting to avoid going into the red and being hit with ridiculous overdraft charges and I suppose as she is no longer wanting to ban payday loans, she doesn’t have to offer one.