We Need To Crack Down On Loan Sharks Preying On The Most Vulnerable

One of the most difficult stories I have heard for some time happened in North Durham this week, where a woman from Stanley ended up paying a loan shark £88,000 for seven years for a £500 loan. This is a truly awful case of the unscrupulous taking advantage of the most vulnerable and we must put a stop to it once and for all.

It is not only the seedy underbelly of loan sharks preying on the most vulnerable. Some apparently 'reputable' lenders are providing loans with APR of up to a staggering 10,000%. Take a company going by the name of 'QuickQuid', which says on its web site that, "depending on the loan term, typical APRs will range from 1351.7% to 9889.3%".

This kind of exploitation is utterly unacceptable. That such a practice is flourishing after more than a decade of Labour Government is symptomatic of a Labour Party that has lost its moral compass.

We need to do much more to protect the vulnerable from financial predators. Those firms and individuals who prey on the vulnerable must be cracked down on. Financial literacy should be taught in schools (bear in mind that in a recent survey 79% of those surveyed ndidn't understand the term APR). A National financial Advice Service should be created to help vulnerable people who are desperate for help and advice. We must also promote the excellent work of Credit Unions and ensure that local people know about the services that they provide.

Above all, we need action and urgent reform to ensure that we see no repeat of the terrible case that was played out in Newcastle Crown Court this week. Such cases represent horrendous human tragedies that should not be tolerated in modern Britain.