Loan sharks to be challenged
New start magazine
The government has confirmed plans to allow people being cltarged exorbitant rates of interest to take their case to an independent ombudsman, as part of a consumer credit bill.
The long awaited bill is expected to help tackle the high cost of credit for low income groups.
While the creation of the ombudsman service was welcomed by campaigners, cornmunity activists criticised the government for fuiling to commit to a statutory cap on interest rates, in line with several EOUmember states.
A spokesperson for Debt on our Doorstep, a coalition of anti-poverty organisations, said: ‘We will continue to push for a legal cap on the cost of credit in common with the majority of other OECD nations, coupled with support for affordable credit accessible at a community level.’
The consumer credit bill is also expected to include additional responsibilities for companies to properly explain the terms of credit agreements.
Source: New start magazine