Stunell supports Christmas call for curb on rip-off lenders

4.51.14pm GMT Mon 19th Dec 2005

Local MP, Andrew Stunell has called on the Government and high street banks to provide a realistic alternative to doorstep lenders, who will bring misery to thousands of people as they struggle to pay for Christmas.

Hazel Grove MP, Andrew Stunell said:

"I know that many people in Stockport are being targeted and ripped off by doorstep lenders, paying way over the odds for credit. They are being hit hard in the run up to Christmas when it's especially difficult to make ends meet.

"Thousands of people in Stockport on low incomes are denied access to basic financial services. They are often driven to exploitative doorstep lenders charging crippling interest rates, which averaged 177% APR last year."

Niall Cooper, vice-chair of Debt on Your Doorstep, said:

"Although there is now widespread awareness of extortionate and predatory lending in poor communities, the Government's response to date has been woefully inadequate." ENDS

Notes to Editors:

1. Andrew Stunell MP is joining with the National Housing Federation and Debt on our Doorstep to demand that the Government provides a realistic alternative to home credit companies and loan sharks, which are:

• The right to a basic bank account for every UK citizen

• A cap on the sky high APR fees charged by home credit companies

• A requirement for home credit companies to pass on their customers' repayment records to credit reference agencies, so that borrowers can build up a good credit history and access more affordable credit elsewhere.

2. For more details, please see http://www.debt-on-our-doorstep.com/ and http://www.housing.org.uk/