Prime minister David Cameron says more support should be given to credit unions in a bid to tackle the “problem” of payday lenders.
Speaking in the House of Commons at prime minister’s questions today, Labour MP for St Helens Dave Watts called on Cameron to take action againt payday loan firms.
Watts also welcomed a decision by Bolton Wanderers to abandon its sponsorship by payday lender QuickQuid in light of local opposition. He asked Cameron to give local authorities the power to ban “predatory loan sharks” from high streets.
Cameron said: “I hear what he says and I wish Bolton Wanderers well for the future. What I say we need to do is give more support to credit unions in our country. That is one of the best ways of addressing this whole problem of payday loans and payday lending.”
From April 2014 payday lenders will come under the regulation of the Financial Conduct Authority when it will take responsibility for consumer credit. They are currently monitored by the Office of Fair Trading.