WALTHAMSTOW MP Stella Creasy’s battle against ‘legal loan sharks’, which she claims prey on the borough’s most vulnerable residents, has won cross-party support.
The Labour backbencher joined forces with Swindon Tory MP Justin Tomlinson to forward the motion demanding a limit on the amount of interest that can be charged on loan repayments.
The proposal will now be debated early next month after gaining the support of the influential Backbench Business Committee, which has agreed to adopt the motion as its top parliamentary priority.
Ms Creasy, who has adopted the issue as her main policy platform since taking over from previous Walthamstow Labour MP Neil Gerrard in the May 2010 election, said she was deeply concerned at the number of people in Waltham Forest being “targeted” by such companies.
She said she had been approached by one Walthamstow resident who had nine separate loans outstanding from the same short-term credit company.
The problem is expected to get worse as unemployment rises.
Ms Creasy added: “I’m delighted that we have now secured a formal vote on how to tackle legal loan sharking. “The sheer number of MPs who put their name to this motion and who turned up to the meeting shows the strength of feeling across all parties about regulating high-interest lenders, and the determination to make the Government act.
“The vote now means MPs have a clear opportunity to tell the Government they want action to regulate these companies who prey on the poorest consumers in Walthamstow and beyond – I hope they will join me in voting for this motion to make sure it is passed.”
Ms Creasy is also preparing for a second reading of similar legislative proposals in her Consumer Credit (Regulation and Advice) Bill on Friday February 4.
Meanwhile London Mayor Boris Johnson has written to Ms Creasy following her complaint at loan firm Wonga.com sponsoring free public transport travel in the capital on New Year’s Eve.
While Mr Johnson said he “strongly supported” the measures the MP was promoting, he added that Transport for London could not make “moral judgements” on which firms were allowed to advertise on the network.
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