HBOS INTEREST RATE RIP OFF MUST END.

HBOS INTEREST RATE RIP OFF MUST END.

LENDING RATES SHOULD BE CAPPED

HBOS and the new Lloyds Group have been exposed as offering personal loans at interest rates nearly 15 times higher than the bank lending rate and nearly 30 times the Bank of England's interest rate.

SNP MSP David Thompson has repeated his call for the UK Government to introduce a cap on interest rates charged by lenders. Recession and redundancy could lead many more people to enter into unaffordable debts.

All other European countries operate a rate cap.

Branding the 28% interest rates offered by HBOS outrageous Mr Thompson who has met with Scottish Justice Secretary Kenny MacAskill to discuss introducing rate caps said;

"The banks are already propped up with taxpayers cash - now they are charging them extortionate interest rates to borrow money that we are putting into the system.

"Rates of 22 and 28% at a time when the actual interest rate is 1% are absolutely outrageous. Even the interest rate between banks is only 2%.

"There is an easy way to stop these extortionate rates from high st banks, store and credit cards and lenders like the Provident.

"I want to see the UK Government cap the rates banks and lenders are allowed to charge in interest.

"Once again consumers are being forced to pay for the failures of the banking system. Low interest rates are supposed to help get money moving, not see consumers tied into loans at extortionate rates.

"These are the kind of rates I expect from loan sharks and doorstep lenders not high street banks.

"All across Europe consumers are protected by caps on interest rates for loans - but in Scotland we are left to face the problems outrageous interest rates and mounting debts lead to.

"This is the perfect time for the UK Government to take action and protect the public."