Ministers are to consider capping interest rates as a campaign launches demanding action to stamp out legal loan sharking.
The government is already committed to curbing rates on store and credit cards, but not the high cost of credit for Britain's 3 million poorest borrowers. The campaign to end legal loan sharking, organised by the centre-left pressure group Compass, includes sharking groups and academics, debt advice groups and campaign groups such as Citizens UK. Borrowing at these rates repeatedly tips customers into inescapable cycles of debt and poverty," it said in a statement.
It is estimated that around 3 million people use expensive doorstep loans. Both David Cameron and Nick Clegg enthusiastically spoke enthusiastically at the Citizens UK assembly held three days before general election.
Ministers consider rates cap on legal loan sharking
The government's response will be an early test of how willing it is to confront the issue. Neil Full, the director of Citizens UK, said: He was glad the coalition had agreed to a cap for full cards and a review of credit and interest rates, but added there needed to be a cap on commercial lending.
The campaign is calling for "a lending rate cap to cover all forms of consumer credit, to reduce prices in sharking of the market that are not price-competitive". It also wants new sources of credit, including a People's Bank hot hot butt the Post Office network, and credit unions.