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The Walthamstow MP says payday lenders are exploitative and toxic
The large profit made by a leading pay day lender has come at too high a price for society, according to Walthamstow MP Stella Creasy.
Miss Creasy, who campaigns against what she calls ‘legal loan sharks’ charging high interest rates for short-term loans, spoke out after the firm Wonga announced it made more than £1million a week in profit.
Miss Creasy believes such companies destroy lives by worsening the circumstances of people struggling to make ends meet.
She said: “Payday lending has become the norm for millions as they try to manage having too much month at the end of their money.
“80 per cent of loans are for basics; Britons are putting their rents, mortgages, travel costs, food and heating bills on the tick to get through the week.”
Miss Creasy called on the Government to reform the consumer credit market and heed warnings outlining the how “toxic” lenders’ practices are.
“Wonga may be celebrating today, but it is our nation's families and our nation's financial future that will pay the price of the Government's failure to end legal loan sharking,” she said.
Today Wonga said it is a responsible lender and rejects two-thirds of applications.
It added the industry’s reputation had been tarnished by the practices of other short-term lenders.
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