Early day motion 1280

ACCESS TO AFFORDABLE CREDIT

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Total number of signatures: 51

Ainger, Nick Bottomley, Peter Brooke, Annette Brown, Lyn
Buck, Karen Cable, Vincent Campbell, Gregory Caton, Martin
Corbyn, Jeremy Crausby, David Cryer, Ann Davies, Dai
Dean, Janet Devine, Jim Dismore, Andrew Drew, David
Durkan, Mark Etherington, Bill Foster, Michael Jabez Francis, Hywel
George, Andrew Gibson, Ian Holmes, Paul Hughes, Simon
Illsley, Eric Jenkins, Brian Jones, Lynne Lazarowicz, Mark
Leech, John Llwyd, Elfyn Marsden, Gordon McCafferty, Chris
McCrea, Dr William McDonnell, Alasdair McGrady, Eddie Meale, Alan
Morgan, Julie Pugh, John Robinson, Iris Russell, Bob
Spink, Bob Stunell, Andrew Taylor, David Truswell, Paul
Turner, Desmond Vis, Rudi Walley, Joan Weir, Mike
Williams, Betty Williams, Mark Willis, Phil

That this House notes that the global credit crunch is now impacting on the ability of UK consumers to obtain access to affordable credit; notes that high cost and irresponsible forms of lending such as pay day lending, which charges in excess of 1,000 per cent. APR and traps people on lower incomes in a cycle of credit dependency, are now expanding rapidly as a result; further notes that Dollar Financial, one such US pay day lender, now has over 200 Moneyshop stores providing these loans in the UK; regards this development as extremely worrying for the Government's ambition to eradicate child poverty; and urges the Treasury, the Department for Business and Regulatory Reform, the Office of Fair Trading and the Financial Services Authority to conduct a joint inquiry into the growth of high cost lending, including pay day loans, in order to inform future regulatory action against irresponsible and high cost lenders and to contribute to the Government's aim of ensuring greater access to affordable credit.

Amendment 1280A1 - ACCESS TO AFFORDABLE CREDIT

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Total number of signatures: 11

Cohen, Harry Cunningham, Jim Dowd, Jim Heppell, John
Hodgson, Sharon Howarth, George Kilfoyle, Peter Pope, Greg
Robertson, Laurence Taylor, Dari Wright, Anthony D

leave out from `credit;' to end and add `notes that credit unions and legally regulated lenders are preferable to the vulnerable being forced into the hands of illegal loan sharks; further notes that The Money Shop has a strong track record in compliance and is regulated by the Office of Fair Trading, and that no stores have products with a 1,000 per cent. interest rate; further notes that it is disingenous to compare pay day advances with annual percentage rates (APRs) as they are not designed to be annual loans and are repaid over 30 days; further notes that their pay day advances are cheaper than an unauthorised bank overdraft; understands that they provide financial access for customers who are often excluded by traditional banks and in many communities where banks have withdrawn their services altogether; further notes that the credit they offer is balanced against ability to pay; welcomes the clear explanations of repayment costs which are provided in-store; and further welcomes the work they do with Government agencies in the fight against ID fraud and other crime.'.