PAYDAY LOANS

That this House welcomes the belated decision to refer the payday loans market to the Competition Commission; is concerned about the expansion of the market, now worth an estimated £2 billion a year; regrets that the investigation may take 18 months; notes that the major player, Wonga, has recently raised interest rates to more than 5,000 per cent APR; is conscious that this market depends on the exploitation of families’ poverty; and condemns the failure of the Government to properly regulate the payday loan market and to cap interest rates.