UK INTEREST RATE CUT EXPOSES RIP-OFF LENDERS.

UK INTEREST RATE CUT EXPOSES RIP-OFF LENDERS.

MSP CALL FOR INTEREST RATE CAP.

Dave Thompson SNP MSP for the Highlands and Islands and a member of the Scottish Parliament's Economy Committee has today called for the Treasury to introduce a cap on interest rates for lenders.

With interest rates now cut to 2% Mr Thompson has identified irresponsible lending practices, including extortionate interest rates as a potential problem as families face recession and as a real burden on consumers.

The UK Government has called on credit card companies to provide more information to consumers but has failed to control rip-off lending rates.

Mr Thompson recently met with Scotland's Justice Secretary Kenny MacAskill, alongside Citizens Advice Scotland and Money Advice Scotland. Mr Thompson is asking the Justice Secretary to raise the issue with the Treasury.

Mr Thompson commented:

"Extortionate interest rates are crippling individuals, families and communities across Scotland.

"Many people struggle for money at Christmas and are tempted not just by doorstep lenders but by offers of store cards at initially attractive rates. Even in the current economic climate store cards are still offered on a regular basis.

"With actual interest rates now down to 2%, the idea of door step lending rates at 164% and store card and credit card rates of 30% is outrageous.

"The whole of the UK has a severe problem with high levels of debt – and reports suggest Scotland is particularly badly affected. This is a prime opportunity for the UK Government to intervene, cap the rates and reduce the risk to families.

"The UK stands alone in Europe as refusing to limit interest rates. Our continental neighbours have interest rate ceilings that stop unscrupulous lenders taking advantage of society's most vulnerable people – it is time for Scotland to join them.

"The meeting with the Cabinet Secretary was very constructive and I hope we will be able to convince the Treasury to take action and protect people from unscrupulous and extortionate lending."