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The Rt Hon Owen Paterson MP

MP for North Shropshire

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Consumer Credit and "rip off loans".

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I am committed to ensuring that more households can manage unexpected costs through affordable credit. Tackling the problems caused by high-cost credit requires a comprehensive approach. That is why the Government wants to both encourage the growth of the social lending sector as an alternative to high cost credit like payday loans, and ensure that the existing payday lending sector is effectively regulated. 
 
The Financial Conduct Authority (FCA) established, reformed and toughened rules governing payday lending in 2015, which included a holistic cap on the total cost of payday loans, so that no payday loan consumer should have to pay back more than twice what they borrowed. In addition, the FCA is consulting on a further package of regulatory reforms for the high-cost credit market. I believe that more can and should be done to build on this progress.
 
I welcome the measures outlined in the recent Budget to make credit even more accessible, and help people manage problem debt. The Budget proposed a 'breathing space scheme', which would allow for a 60 day protection period from debt recovery action by creditors. The policy, on which there will be a consultation, is intended to allow people time to work out a path to consistent pay-back of debt. 
 
The Budget also announced the introduction of a pilot scheme for interest free loans. There will first be a feasibility study carried out by the Government in collaboration with banks and debt charities.
 
Credit Unions are another key pillar of the affordable lending sector; a new pilot prize-linked savings scheme, also announced at Budget, will enable them to build their capital and expand their lending activities.
 
I am also glad the Government is cracking down on unlawful lending, or 'loan sharks'. There are around 300,000 people in Britain who are in debt to loan sharks, and important steps are being taken to help them. In April 2018, £5.5 million of funding was announced for investigations into illegal lenders and for prosecuting them, as well as assisting the victims.
 
I hope this reassures you that action is being taken to help people access affordable and reliable credit. I will continue to make my voice heard to defend the interests of my constituents.
 

 

Campaign Responses

  • Asylum accommodation 22/02/2021
  • Climate and Ecological Emergency Bill 22/02/2021
  • Dementia and Coronavirus 08/02/21
  • Neonicotinoids 05/02/21
  • FFP3 Masks 02/02/21
  • Trade Deals 19/1/21
  • CAMRA Save Our Pubs Campaign
  • Nazanin Zaghari-Ratcliffee and Anoosheh Ashoori
  • Coronavirus: Closed Churches
  • Planning Reform
  • British Heart Foundation and Medical Research Charities
  • Free School Meals 27/10/2020
  • Immigration Bill: Family Reunion
  • Women and Equal Pay
  • MPs' Pay
  • Shelter's 'Building Our Way Out' Report
  • Immigration Detention Time Limit
  • Coronavirus: Maternity Care
  • 'Fire and Rehire' Tactics
  • Agriculture Bill: Animal Welfare and Trade
  • Breast Cancer
  • Coronavirus: Disabled Welfare
  • EU Negotiations
  • Coronavirus: Household Debt
  • Asylum Seekers Support and Employment
  • NHS Pay Rise
  • Global Wildlife Trade Ban
  • Protecting Girls in Crisis
  • Extension of Covid-19 Support Schemes
  • Fuel Duty
  • Medical Cannabis: Epilepsy
  • Proportional Property Tax Proposal
  • Israel: Peace Agreements
  • Coronavirus: Public Test and Trace
  • Air Quality
  • Pet Microchipping
  • Green Recovery
  • Pancreatic Cancer's No Time to Wait Campaign
  • Children's Health
  • Overseas Operations Bill
  • Asylum Support Payments
  • Internal Market Bill
  • Coronavirus: Vulnerable Christians
  • Wellbeing and Counselling in Schools
  • Disposable BBQs
  • Domestic Abuse Bill
  • Coronavirus: Ovarian Cancer
  • General Practice
  • Humanist Marriages
  • Adult Social Care
  • Sustainable Fishing - Super Trawlers
  • Coronavirus: Mental Health
  • Arthritis
  • Investor-State Dispute Settlement Mechanisms
  • Eco-Friendly Education Buildings
  • Legal Aid
  • Wildlife Licensing
  • Trade Deals
  • Persecution of Christians
  • Coronavirus: Travel Industry
  • Heat Pumps
  • Yemen
  • Low Income Countries: Debt Cancellation
  • EDM 529
  • Rough Sleeping
  • Coronavirus: Performing Arts
  • Black Curriculum
  • Coronavirus: Clinically Vulnerable Returning to Work
  • British Food Production Standards
  • FCO and DfID Merger
  • Mental Health: Face to Face Assessments
  • Coronavirus: Government backing for business
  • George Floyd, Black Lives Matter and export controls
  • Immigration Bill
  • Radiotherapy Services
  • PPE: Health and Social Care
  • Road Speed Limits
  • Fur Free Britain Campaign
  • Coronavirus: Asylum Support Payments
  • Israel the West Bank
  • 'No Recourse to Public Funds' Campaign
  • Trade Bill - US Free Trade Agreement
  • Illegal Wildlife Trade - EDM139
  • Trophy Hunting - EDM50
  • Environment Bill: OEP
  • Coronavirus: Free School Meals
  • Coronavirus: Trussell Trust's Proposed Emergency Income Support Scheme
  • Coronavirus: Abortion
  • Coronavirus: Childcare and Childminders
  • Environment Bill: Air Quality
  • Windrush Report
  • Universities and Antisemitism
  • Immigration Points System
  • EDM57 - Regulation of Social Networks
  • Coronavirus: Motor Nurone Disease
  • Horseracing: use of the whip
  • EDM 291 - Ban on war experiments on animals
  • Coronavirus: Iran Sanctions
  • Dementia Care
  • Agriculture Bill: Animal Welfare and Food Safety
  • Northern Ireland Abortion Framework
  • Animal Cruelty Sentencing
  • Gamebird Welfare
  • My letter to constituents regarding Government financial support for airlines
  • Voter ID
  • Brexit update 10th October 2019
  • 1984 Sino-British Joint Declaration
  • Adults with eating disorders
  • Cycling and Walking
  • TV licence for over-75s
  • "People's Vote"
  • Arms to Saudi Arabia
  • Tax Cuts
  • Affordable Housing
  • Earthquakes and Fracking
  • Probate Fees
  • My letter to Constituents regarding the suspension of Parliament
  • Consumer Credit and "rip off loans"
  • Trafficked children
  • Trophy Hunting
  • Immigration Bill and the NHS
  • NHS Long Term Plan
  • Puppy Smuggling
  • Assisted Dying event 11th December
  • Caging of pheasants and partridges
  • Beer Duty
  • Sex-selective abortion
  • Dying at Home
  • Rohingya Children
  • Footpaths
  • BBC impartiality
  • Defend Israel
  • Ban Al Quds and Hezbollah
  • Stand Up for Nature
  • Communities vs Blood Cancer
  • Homelessness
  • Horses on the road
  • Horse tethering
  • Fracking
  • Offensive Weapons Bill and shop workers
  • Royal Commission on Policing
  • FIxed Odds Betting Terminals
  • DVLA and diabetes monitoring technology
  • Future trade deals
  • Housing Regulator
  • Stop Christophobia campaign 21/05/19
  • The Abuse of Children and Civilians by Hamas
  • Live Exports
  • Cost of Medicines
  • Plastic pollution in UK rivers
  • Eating disorders
  • Forced abortion
  • Cancer Treatment - Coronavirus

Owen Paterson MP MP for North Shropshire

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