PAYDAY LOAN COMPANIES

That this House notes the warning by the trade union, Unite that more than 80 per cent of British workers are unable to make their wages last the month; further notes the rise in payday loan companies such as Wonga, QuickQuid and Money Shop since the economic downturn; is concerned by Unite's findings that one in eight workers regularly turned to payday loan companies to make ends meet; deplores the exorbitant rates of interest charged by payday loan companies, which are typically 1,200 per cent APR and can reach 4,200 per cent APR; believes that such rates are likely to trap borrowers in a spiral of debt; is concerned that Citizens Advice Bureaux have seen a fourfold increase in the number of people with payday loans seeking help; recognises that the harm that such loans do to individuals has a further knock-on effect on the UK's high streets; further deplores the fact that some payday loan firms have even been known to use threats; supports credit unions as a civilised alternative to payday loan companies; further notes that the majority of voters believe a cap should be imposed on the total costs that can be charged by payday loan companies; and calls on the Government to impose such a cap.