Consumers warned against loan sharks
Consumers warned against loan sharks
- Monday, 14 March 2011Brits with money worries have been advised against turning to payday loan companies, as these could lead to
debt problems.
That is because some of these lenders offer interest of 4,000 per cent, reports thisismoney.co.uk.
A number of MPs have warned against these firms, as there has been an insurgence of these loan companies in the UK, as it is not as highly regulated as other countries.
Stella Creasy, a Conservative MP, has submitted a Private Member's Bill against these companies.
She is quoted as saying: "They are lending people a huge amount of money that they haven't got a hope in hell of paying back.
"Every day we fail to take action on this is another day when debts are piling up. Let's not wait until this becomes a massive problem."
Jason Riddle, co-founder of Save our Savers, recently stated that people seeking
debt advice should not borrow money to help them clear their debt unless they can afford to pay it back.

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