Angus MP Mike Weir has welcomed the announcement from the Office of Fair Trading that they are taking action against some ‘Pay Day Lenders’ over their practises and has urged constituents to consider carefully before taking out such loans.
Mr Weir said: “The OFT investigation has uncovered some evidence that some payday lenders are acting in ways that have caused them to open formal investigations into their practises. In these difficult times when many people find it difficult to make ends meet these lenders are making serious inroads with large amounts of TV advertising and shop fronts on many of our high streets.
“These companies operate on the promise of making loans available almost instantly but the interest rates charged on many of these small loans are, however, eye watering and many borrowers find themselves in serious difficulties.”
Mr Weir added that everyone should consider what alternatives are available and urged constituents to consider whether a Credit Union would offer a better alternative.
“There are alternatives to these loans and I would urge everyone to consider joining the Angus Credit Union which encourages savings of even a small amount on a regular basis. When a savings pattern has been demonstrated they can offer small loans at much more affordable rates.”
Mr Weir’s comments follows those of Angus Councillors Glennis Middleton and Lynne Devine who urged everyone to join the Angus Credit Union at this month’s meeting of Forfar Community Council.