PROPOSED legislation by Walthamstow MP Stella Creasy to tackle "legal loan sharks" has secured a second reading in Parliament.
Ms Creasy, of the Labour opposition, tabled the bill at the House of Commons earlier this afternoon under the "ten minute rule", which allows backbenchers to suggest new laws.
The 'Consumer Credit (Regulation and Advice)' bill proposes a cap on the interest that can be charged on loans and on late payment and default fees.
It also calls for a levy on the sale of credit cards and store cards in order to fund debt advice services.
The bill also provides for local council planning committees to limit the number of consumer credit agencies within an area, and calls for integration of the Post Office network with credit unions.
Ms Creasy said: "I know from working with families here in Walthamstow the impact of these so called legal loan sharks on our local area.
"I'm determined to show this Government they can't ignore the poorest consumers who often end up paying the highest prices for borrowing money when they can least afford it."
MPs present gave their backing to the bill, and there was even a backhanded compliment of sorts from Tracey Crouch, the Conservative MP for Chatham and Aylesford.
She wrote on website Twitter after the reading: "There is a lot of merit in Stella Creasy's consumer credit regulation bill [but it is a] shame the preamble was so party political".
The second reading will be heard in February 2011.
However ten minute rule bills have rarely been allowed to progress further through the legislative process by previous Governments.
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