LIB DEMS URGED TO ACT ON INTEREST RATES

LIB DEMS URGED TO ACT ON INTEREST RATES
“SCOTTISH SECRETARY MUST STAND UP FOR SCOTLAND"
Dave Thompson, SNP MSP for the Highlands and Islands and a Vice-President of the Trading Standards Institute has today, 21st June 2010, written to the new Secretary of State for Scotland, Michael Moore MP, urging him to ensure the UK Coalition Government delivers on its pledge to tackle extortionate interest rates forced upon many low income borrowers.
Mr Thompson’s call comes in the wake of an OFT report into high cost credit, which stated that the ‘fundamental and longstanding issues’ of high interest rates could only be tackled at Government level.
The UK Coalition Agreement included a commitment to ban excessive interest rates, as did the Liberal Democrats manifesto for the election in May.
In his letter, Mr Thompson drew attention to these commitments as well as highlighting evidence that suggests Scotland has a particularly acute problem with unaffordable consumer debt and high interest rates.
Mr Thompson commented:
“Far too many Scots are being exploited by unscrupulous lenders charging sky high interest rates.  Many low income people cannot access mainstream credit, and so have no choice but to borrow from so called sub prime lenders who think nothing of charging interest rates with treble or even quadruple figures. 
"This problem exists across the UK, but there is evidence that Scots have higher levels of unsecured borrowing and are more vulnerable to excessive interest rates.  It is therefore incumbent on Michael Moore to use his key position to stand up for Scotland and push for the speedy implementation of the Coalition's promise to ban these sky high interest rates.
"To their shame, the previous Labour UK administration refused to take action to protect low income people from irresponsible lending, despite countries across Europe from France to Germany using a limit for interest rate charges.
"The new UK Coalition Government have made welcome statements and commitments to tackling this issue – but they will be judged by deeds, not words, and must act on their pledge.
"Michael Moore has the opportunity to use his office to make a real difference to the many Scots suffering in the face of extortionate interest rates and work with his colleagues in the Treasury to take immediate and decisive action.