by Stella Creasy

LAST WEEK  I wrote that loan sharks are circling Britain’s poorest families, excited by the likely effects of the Government’s spending review and lying in wait to prey on people’s increased financial vulnerability. This week, thanks to the hard work of campaigners and opposition MPs, the sharks are now starting to come under threat themselves.

My consumer credit (regulation and advice) bill, which seeks to combat exploitation in the payday and doorstep credit market, passed through its first reading this week. The bill pushes for a range of measures including a cap on the total cost of borrowing money, an expansion of credit union access points through the postal network and a levy to provide funding for debt counselling services to help those in financial difficulty.

It was supported through its first reading by a large number of Labour MPs who believe if the government is intent on pushing their budget on Britain, it will raise the number of families living with the daily misery of debt. We want them to take responsibility for the consequences of their policies– and judging by the growing public concern we are not the only ones.

According to the association of business recovery professionals, four in ten people are worried about their current level of debt, with three million fearing redundancy and two million having taken on more debt in recent months. (more…)