MSE News: Payday loan campaigner Stella Creasy excluded from crunch summit

Former_MSE_Helen

"Avid payday loan campaigner and outspoken critic Stella Creasy has not been invited to attend a crunch summit..."

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Payday loan campaigner Stella Creasy excluded from crunch summit



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cepheus

It sounds to me as if they don't want too many critics. I'm sure Martin will stand up for the rights of the exploited.

opinions4u

Is a 'Crunch Summit' a northern breakfast cereal?

Tiglath

It's ridiculous. Stella's my MP and while I'm not her biggest fan on some issues, I do salute her for the spotlight she shines on payday loans.

fatbelly

I agree it's an odd decision but I've seen Martin in action on these sort of things before.

He's good. I'm sure he'll cover the issues.

mo786uk

Well she is not part of Govt so its not a massive surprise

I daresay the PDL companies dont want to offer the kind of things Cresy is aksing for.

Also the Govt has made quite clear it doesn't want to regulate too much.

pmduk

The govt & civil servants will want to do this by persuasion rather than coercion. After all the tories need wonga's donations. Including stella creasy would probably have sent the wrong message.

cepheus

If Labour get into power, let's hope they organise another meeting and forget to invite the loan shark industry!

cepheus

Consumer group Which? has called on the government to introduce tighter regulation, ahead of a summit on so-called payday lenders.

These companies offer short-term loans at high interest rates but are accused of leading people into more debt.

The industry, worth £2bn, was referred to the Competition Commission by the Office of Fair Trading last Thursday.

The summit will bring together payday lenders, regulators, charities and ministers.

http://www.bbc.co.uk/news/business-23116538

cepheus

The example of Canada shows us how to do it

First the Canadian Payday Loan Association, the trade body representing high-cost lenders, adopted strict Code of Best Business Practices. Unlike the UK equivalent which is full of vague promises and empty rhetoric, this Code has clear and enforceable provisions, including a complete ban on rolling over loans from month to month and a promise to only offer one loan per customer.

Next the Canadian government announced a cap on the total cost of credit and implemented it in a way which allowed payday lenders to continue to operate within ethical boundaries.

After consultation, a high national limit was set with regional governments able to implement lower local limits. Some regions then took the sensible step of establishing ‘cap commissions’ made up of industry, regulatory and civil society representatives to establish a fair level to cap the total cost of credit at (in Ontario, for example, this has ended up with a $21 limit for every $100 lent).

shinkyshonky

mo786uk wrote: »

Well she is not part of Govt so its not a massive surprise

I daresay the PDL companies dont want to offer the kind of things Cresy is aksing for.

Also the Govt has made quite clear it doesn't want to regulate too much.

I wonder why..

One of David Cameron's senior advisers is leaving Downing Street to become a lobbyist for Wonga, the controversial payday lender.
Jonathan Luff, the Prime Minister's advisor on digital strategy, will be able to start straight away at the company, which has been criticised for allegedly heavy-handed debt collection tactics.
His move, first reported by Sky News, is likely to fuel the debate about the "revolving door" between ministerial aides and lobbying. There are fears that businesses are able to hire influential people straight from the heart of government.
Mr Luff's decision to join Wonga is likely to be particularly controversial, as the company fights calls for new regulation that would limit its business activities.
Payday loans firms have been described as “legal loan sharks” for preying on the poorest workers who cannot make their income stretch from one pay cheque to another.
The lenders are worried that the Government or financial regulators will cap the interest rates they charge, which can add up to 4,000 per cent a year.
Wonga was censured for employing “aggressive and misleading” debt collection practices by the Office of Fair Trading earlier this year.
A spokesman for Wonga confirmed that Mr Luff will join the company to lead its "government affairs" team. On his Twitter account yesterday, Mr Luff posted: "Home. What an extraordinary week. Huge thanks to friends both old and new. #onwards"
Earlier this month the Daily Telegraph revealed that Conservative ministers agreed to hold meetings with Wonga at the Tory party conference in exchange for payments to the party.
Business executives were charged £1,250 for face-to-face meetings with ministers at which they were invited to help “develop” business-friendly policies in sessions likened to 'speed dating'.

Stella Creasy has also been target of wonga

http://www.guardian.co.uk/business/2012/nov/21/wonga-apologises-stella-creasy-abusive-twitter-messages