CONDUCT OF PRIVATE LOAN COMPANIES

That this House is concerned about the practices of loan companies like wonga.com which charge people excessive interest rates for borrowing money; notes that first time wonga.com customers could pay as much as 2,689 per cent. annual rate for a short-term loan; finds it distasteful that companies can prey on vulnerable people in this manner; recognises that people using this company will end up in a cycle of debt making themselves even poorer; is appalled that wonga.com advertises on televisionportraying itselfas a respectable company; condemns the tone of the advertisements which try and encourage people to borrow money; and calls on the Office of Fair Trading to urgently investigate the interest levels this company charges which are exploiting some of the poorest people in society.