Saturday, 17 August 2013
Campaign against Payday loan firms launched
Plaid Wrecsam and local trade unionists launched our campaign against PayDay Loan companies today. There was a great response on the street - people really hate these legal loan sharks.
Both Cash Converters and The Money Shop were targetted and many people stopped to talk about the problems people face.
Most interestingly, one of our members went in to ask about the rates. A £100 loan until the next payday would cost £130 - a staggering 30% monthly interest which equates to a ridiculous 400%+ APR. Although the member isn't currently working, she was still offered the loan subject to some bank checks - so these "payday" loans are in fact being offered to people on benefits.
The Plaid Cymru leaflets distributed on the day pointed people in the direction of the local credit union in King Street. A similar £100 loan would cost just £2 a month in interest.
What is needed now is for the North Wales Credit Union to start pushing its positive message far more openly that small weekly or monthly savings can allow members to get low-cost loans for the emergencies in life. The Payday loan sharks are far more likely to get that trade when they're aggressively pushing their offers in the high street.
Plaid AM Bethan Jenkins is currently consulting on a new Welsh law to tackle legal loan sharks by introducing "financial literacy" in schools.