Houghton and Sunderland South MP, Bridget Phillipson has today launched a campaign to support constituents against the rise in personal debt and high-interestlending. Constituents are asked to take part in Bridget’s ‘personal debt and high-interest lending survey’ in response to local concerns about pay-day loans and rent-to-own offers.
Previously the Office of Fair Trading looked at the high-cost credit market but concluded that actions needed to force market changes were beyond its remit.
Bridget is co-sponsoring Stella Creasy’s bill on legal loan sharking – calling on the government to regulate this industry and payday lenders by introducing caps on the total cost of credit.
Commenting on the launch of her survey, Bridget said:
“Families across Wearside are facing a big squeeze on their household budgets and living standards. Last week’s budget has not provided the support families in my constituency were looking for.
“In these though times many people turn to pay-day-loan or rent-to-buy companies. I’m concerned that these companies are specifically targeting those at their most vulnerable – leading to a spiral of debt.
“My survey will help me understand the effects of taking out these loans and what could be done to support people hit the hardest.”
To take part in Bridget’s survey, click here.