TUC welcomes Bill to limit the pain of payday loans

date: 12 July 2013

embargo: For immediate release

Commenting on Paul Blomfield's High Cost Credit Bill which gets its Second Reading in Parliament today (Friday), TUC General Secretary Frances O'Grady said:

'Payday loans are not the answer for people whose wages or benefits simply aren't enough to pay their day-to-day living costs.

'People who have long-term problems and take out these loans with very high rates of interest can get into serious trouble very quickly. They need practical help like credit advice and other support to stop their debts from snowballing.

'All low-paid workers need clearer financial information so they can understand when loans like this aren't right for them. This Bill is a chance to make a real difference to a serious problem.'

NOTES TO EDITORS:

- Paul Blomfield is the MP for Sheffield Central.

- The High Cost Credit Bill includes provisions to control the advertising and marketing of high cost credit products, and to ensure clearer information is provided to borrowers on the cost of loans and on additional charges levied if they fail to repay.

- The Bill would also include new measures to ensure that loans are affordable by introducing lending limits and capping excessive charges. It will also require lenders to refer borrowers to free independent debt advice, freeze charges and ensure that proper repayment plans are put in place.

- The TUC's campaign plan can be downloaded from www.tuc.org.uk/campaignplan

- All TUC press releases can be found at www.tuc.org.uk

- Follow the TUC on Twitter: @tucnews

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Alex Rossiter T: 020 7467 1337 M: 07887 572130 E: arossiter@tuc.org.uk