Press Releases

Thursday 9th November 2006

 

Midsummer Residents & Staff Back Campaign Against Rip-Off Lenders.

 

Over 150 MPs have backed a campaign calling on the government to cap the sky-high interest rates of doorstep lenders, thanks to lobbying by Midsummer Housing Association residents and staff in Milton Keynes.

Doorstep lenders, also known as home credit companies, charge crippling APR rates ranging from 160% to an astonishing 800% on loans, trapping low income families in a vicious cycle of debt where they have to borrow more to pay off the interest on previous loans.

People on low incomes are often driven to these companies because they don’t have access to bank accounts, impartial financial advice or affordable credit.

Over the last few months Midsummer has been sending ‘reminder notice’ postcards to their local MPs calling on them to support a national campaign against extortionate interest rates. The campaign was set up by National Housing Federation, representing England’s 1400 housing associations, and fair finance pressure group Debt on Our Doorstep.

Early Day Motion 1068: Interest Rates Charged By Doorstep Lenders, which supports the campaign and calls for an interest rate cap, was tabled in the House of Commons last November and continues to gain support from over 150 MPs across all parties.

Maggie Sherlock, Chief Executive at Midsummer said:

"The Government needs to do more to end the extortion of people on the lowest incomes. It’s ridiculous that these companies can name their price when lending to the poorest families. It needs to stop. It’s great to see that our local MP, Dr Phyllis Starkey has listened to the concerns of local people and put her name to the campaign.”