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Nearly seven people in 10 want the government to impose a cap on the interest
rates that can be charged by credit companies, a survey of 2,095 people shows.
The study, by campaign group Compass, claims the public want tighter controls on
all forms of credit, including pawnbroking and so-called payday loans.
It says the unsecured credit sector "causes misery for thousands".
Research published earlier this month by Consumer Focus suggests 1.2 million
people are now taking out short-term payday loans every year, borrowing a total
of £1.2billion.
Such loans can provide a quick and efficient way of getting hold of credit, but
some providers have been criticised for charging interest rates of more than
2,500% a year.
Compass branded some credit arrangements "legal loan sharking" and its survey,
conducted by YouGov, found that 68% of people felt it was up to the government
to protect consumers.
Of those polled, 69% also agreed that the government should do more to support
sources of affordable credit such as a post bank and credit unions.
Gavin Hayes, general secretary of Compass, commented: "These findings show that
the government's plans for credit reform don't go far enough.
"The public feel that just capping excessive credit and store card rates falls
short.
"They want caps on the cost of credit to cover the whole of the unsecured credit
sector that causes so much misery for thousands of people in the UK that can
least afford it.
"This is a key test of the coalition government's stated commitment to create a
fairer society.
"Now we need to see if it backs the people or the financiers."
Source:
Getting Paid
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