I was interested to read an article this week in Civil Society News about MP Stella Creasy attacking the Wellcome Trust for investing in what she believed to be an unethical “payday loan” style lender. She is at present trying to bring in legislation to curb the ability of payday loan companies to charge exorbitant fees.
I live in Brixton and was sad to see more payday loan places open on the high street last year as more people struggled to keep their heads above water. However, instead of spending a lot of time bringing in legislation why can't our politicians spend more time encouraging enterprising social lenders into the marketplace with more competitive, more ethical offers? Why haven't more Credit Unions and other forms of fairer finance been more successful while payday loans taking huge fees, ripping off their customers seem to grow year on year? There must be some sort of gap between what social enterprise finance lenders offer and what the customer wants? Why else would someone pay huge sums to get money advanced? Surely it can't just be consumer ignorance and ease of access. If it is then there is a lot the government could be doing to help people manage on low incomes and at the same time build the social lending sector apart from just throwing legislation at the market.
By Matt Knopp
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1 comments:
Payday loan is considered as small loan. It is one of the faster money loans that you could have. Even though that it is only on small amount but you should consider also on your capability for paying it on your next payday.
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