Thursday, July 25, 2013

Archbishop Welby should shame the Government into action on the payday loan fraudsters

Lets be clear about this. This issue has been around for years and the Government has done NOTHING about it. Any fule knows that something is very fishy indeed when at a time of historically low interest rates  sharks charge rates thousands ( yes thousands) of times greater than the rates at which they can borrow. The fact that the loan periods are short is completely irrelevant. The interest rate still applies. And it is beyond usury - it is fraud. Stella Creasy has been excellent but has anyone in Government done a thing in response to her efforts? The Wongas of this world plough some of their ill-gotten gains into extensive advertising and sponsorship - multimedia promotional budgets which reach the poor and vulnerable. Newcastle United have the Wonga name on their shirts - no surprise there. Area of deprivation so money "well spent" no doubt.

Welby may shame the Government into action but don't bet your house on it! The CofE does not have the financial resources or the expertise to take these parasites on. Government does - particularly through its ownership of all or part of some banks. There is a need for short term loans for those struggling to make ends meet. Government should use RBS (maybe through NatWest) to set up a loan operation which charges fair interest rates which cover the higher risk and operational costs but which don't rip the poor and vulnerable off. This is not a Left or Right issue - it is one that we should be united about. If Welby's initiative does this we will owe him a debt - of gratitude.  


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