Walthamstow MP Stella Creasy excluded from summit on payday loans companies

Miss Creasy was a leading figure in a campaign which gave the Financial Conduct Authority greater powers to protect consumers from extortionate interest rates last year, but her request for an invitation to attend today’s summit on the industry was left unanswered.

Many payday loan companies charge up to 4,000 per cent annual interest on loans and the industry was referred to the Competition Commission  by the Office of Fair Trading last Thursday, citing deep-rooted problems within the industry, with varying levels of compliance with credit laws.

Many of the companies were called in today to meet with the government’s consumer affairs minister, Jo Swinson along with regulators and consumer groups, but Miss Creasy was not invited.

She told the Guardian she feared it was because her support for a cap on the amount people can borrow – and therefore owe – is not up for discussion today.

Miss Creasy said: “It’s not so much about whether I should be in the room as whether that elephant should be.

“A meeting on tackling the industry without talking about the cost of credit is like talking about how to tackle arson without talking about people’s access to kindling and tinderboxes.”

The industry rejects this proposal and claims by limiting the amount people can borrow, more people would seek out illegal loan sharks.

But the MP said evidence from other countries that do impose a cap shows the opposite is true.

She added: “It’s a really major omission from the conversation. Let’s see what they come up with but it’s disappointing if the reports are true that they’re not even going to talk about capping.”

She invited people from Waltham Forest to join the borough’s Sharkstoppers campaign.

You can email her at stella@workingforwalthamstow.org.uk for more details.

The Guardian has approached the Department for Business, Innovation and Skills for comment.