PROTECTION NEEDED FOR LEGAL LENDERS - STOP LOAN SHARKS HELPLINE.

PROTECTION NEEDED FOR LEGAL LENDERS - STOP LOAN SHARKS HELPLINE.

SNP MSP Dave Thompson has called for the UK Government to take action on legal interest charges as he welcomed the extension of a stop loan shark helpine.

Mr Thompson is calling for the UK Government to join all other EU nations by introducing a cap on the level at which interest can be charged.

Recent cases have shown high street lender HBOS charging 28% for a loan – nearly 30 times the interest rate and 15 times the bank lending rate (LIBOR), whilst store cards and doorstep lenders routinely charge interest at well over 40%.

Highlands and Islands MSP Dave Thompson has been working with Citizens Advice and other debt organisations in calling for an interest rate cap.

Commenting on the loan shark helpline and the need for an interest rate cap Mr Thompson said;

“Loan shark lenders ruin lives and communities with their outrageous rates and rough practices – however more and more people are finding it is legal lenders that are leaving them with mounting debts.

“That high street banks bailed out by the taxpayer find it acceptable to charge 30 times the interest rate is an absolute disgrace.

“Cracking down on loan sharks with confidential help lines is good news – but we must take legal lenders to task.

“These rates are obscene and it is ridiculous that the UK is the only country in Europe not to cap interest rates. The UK Government must take action.”