A Sheffield MP has vowed to push forward his campaign to reform the regulation of payday money lenders that can leave people in ‘desperate’ circumstances after it was opposed by Government.
Paul Blomfield’s High Cost Credit Bill received cross-party support in its second reading debate in Parliament yesterday, but was opposed by Government ministers.
Sheffield Central MP Mr Blomfield said: “We had a really good debate and I was encouraged by the cross-party support. There is clearly a strong mood across Parliament for tougher regulation of payday lenders.
“The minister responsible, Jo Swinson, said the Government wouldn’t back the bill because ministers didn’t want to see the Financial Conduct Authority given direction by Parliament.
“I’m absolutely determined to see this through.
“The situation with payday lenders was described by one of my colleagues as a national scandal and another colleague said Parliament has a duty to investigate it.
“Stories came from all over the country.
“There were graphic and often tragic examples of people put into desperate circumstances by falling into the trap of payday lenders.
“I’ll be pushing forward very strongly on this.”
The Star is backing the bill, which aims to ‘stop the rip-off’ of payday lenders.
It calls for tighter controls on advertising and lending limits, and clearer information on interest charges.
Mr Blomfield also said Sheffield people had been ‘very supportive’ of his private members’ bill topic.
The bill’s second reading will continue in September.