Public want government to cap credit interest rates

Aug-2010

Most of the people want the government to impose a cap on the interest rates that can be charged by credit companies, a poll suggests. Plans already exist to ban excessive rates on credit and store cards.

But campaign group Compass claims its survey of 2,095 people shows the public want tighter controls on all forms of credit, including pawnbroking and so-called payday loans.

It says the unsecured credit sector "causes misery for thousands".

Research published earlier this month by Consumer Focus suggests 1.2 million people are now taking out short-term payday loans every year, borrowing a total of £1.2bn.

Such loans can provide a quick and efficient way of getting hold of credit, but some providers have been criticised for charging interest rates of more than 2,500% a year.

Source: BBC.CO.UK