Church of Scotland criticises payday lenders

PA
The Church of Scotland is critical of the extortionate rates of interest charged by payday lenders

The Church of Scotland has asked MPs to take action to curb high cost credit.

The Reverend Sally Foster-Fulton, Convener of the Kirk's Church and Society Council made the appeal in a letter sent to all Scottish MPs ahead of a debate in the House of Commons today.

The High Cost Credit Bill has its second reading in the Commons today. It provides for the regulation of high-cost credit arrangements and controls on advertising.

The Church of Scotland is critical of the extortionate interest rates charged by payday lenders, with the 2012 General Assembly calling for a legally binding maximum interest rate for all kinds of consumer credit, to be set initially at an APR of 40%.

It notes that the Money Advice Trust reports receiving over 20,000 calls for help with payday loans in the last year.

Advertisement

In her letter, Ms Foster-Fulton urged MPs to support the Bill.

"The economics of our society is badly wrong. Payday lenders who levy extortionate charges and rates are exploiting the most vulnerable," she said.

"We need alternatives for affordable credit for people on lower incomes, as well as a fundamental reform of our current economic system. After the financial crisis many people said that we could not return to business as usual. Ensuring that reasonable and responsible financial services are available to everyone, especially the most marginalised, is essential.

"The Church of Scotland is on the side of the most vulnerable in society because we believe that there is a Gospel bias to the poor."

More News in Society
  • pride

    Latest psychology research challenges 'born gay' theory

    The lesbian, gay, bisexual and transgender (LGBT) community has long argued that homosexuality is natural among human beings and cannot be changed or treated. However, a top researcher who is a member of their community has recently acknowledged that homosexuals are not "born that way" and can still be changed.

  • corbyn

    Jeremy Corbyn Re-elected As Labour Leader, Calls For Unity

    Jeremy Corbyn has been re-elected as leader of the Labour party, beating his rival Owen Smith and winning a slightly bigger mandate than when he succeeded the former leader Ed Miliband last year.