The government has pledged to cap how much payday lenders can charge, but the scandal of exorbitant interest rates continues, keep the pressure on government to end irresponsible lending and cap the interest rates lenders can charge.
The third week of every month is rapidly turning into ‘Wonga Week’ as massive strains on household incomes push working people into the arms of payday lenders.
A recent ComRes survey found one in 10 people need a payday loan just to get by – that’s over five million people. There are now a host of payday lenders pushing ordinary people into debt. Loans from these payday lenders can come with interest rates of over 4,000 per cent and there are countless stories of how £100 loans have spiralled into debts of £10,000, £15,000 and more.
Unite has been tracking the impact of the economic crisis created by the Con-Dem coalition’s disastrous economic policies on working people. Unite's survey reveals troubling levels of debt as Unite members report housing and food costs rocket as incomes shrink. That gap is being filled by payday lenders taking advantage of the pressures working people are under and according to the research swallowing up some £2.7 billion of workers' wages.
This has got to stop.
Unite is calling for:
- An end to irresponsible lending
- A cap on the interest rates firms can charge
- An immediate increase in the minimum wage of £1 an hour to help the poorest workers
What you can do
Keep your eyes on parliament and make sure that the government sticks to its pledge and implements better regulation of the industry.