The Sun says no one should have to pay back more than double what they borrow – we want the Financial Conduct Authority to take action to extend the cap on payday loans to help more struggling Brits
THE Sun today calls on our army of readers to help millions of struggling Brits get out of debt and Stop The Credit Rip-Off.
We're calling on you to help pressure the financial regulator into putting a cap on the total amount repayable to doorstep lenders and for rent-to-own goods such as tellies and washing machines.
Around seven million people in the UK resort to high-cost credit to help make ends meet, and many of them end up paying more than double what they borrowed in the first place.
People whose wages or benefits don't stretch far enough need to borrow from rent-to-own or doorstep lenders to help pay for things such as an unexpected bill or to furnish their homes.
These come with exorbitant rates of interest – more than 1,500% in some cases of doorstep lending.
If we get more than 100,000 signatures, the Government will consider our issue for a debate in Parliament.
MPs, Peers and campaigners from across the political spectrum have welcomed The Sun's campaign and urged readers to get behind it.
Richmond MP Zac Goldsmith backed us and added his name to the list of supporters. He said: "This is an important campaign by the Sun to address life-destroying, out-of-control interest rates on rent-to-own loans."
Tory MP for Dover and Deal Charlie Elphicke added: "This is a great campaign by The Sun to protect consumers against sky-high rent-to-own interest rates. Please sign and share the petition!"
And Tory MP for Harlow Robert Halfon said: "These kinds of loan sharks are getting their teeth into the most vulnerable, savaging their incomes with jaw-defying interest rates.
"It's time to support the Sun’s campaign, sign the petition today, and back the cap to ensure a fair deal on loans for everyone."
And former Pensions Minister Baroness Altmann said today: "I'm urging everyone to sign the Sun's petition in their support of ending rip-off credit fees.
"Surely people should not normally have to pay back more than double what they borrow from a doorstep or rent-to-own loan.
"The sooner we do this, the better, so that people can enjoy an improved standard of living."
Long-serving Treasury committee MP John Mann added: "It’s time we ended rip-off Britain and eased the pain for many decent British families."
The SNP's Stewart McDonald urged Sun readers to sign today. He said: "Rip-off creditors need to be brought to book. The Wild West culture that they operate in has devastating effects on struggling households, and it’s about time the Financial Conduct Authority took tough action to stop the exploitation of people who are already shouldering tough times.
"We know the FCA has taken action before, so let’s see them extend that action by taking on these rogue creditors and getting squarely behind ordinary consumers."
Lib Dem Leader Vince Cable congratulated us too for highlighting the issue.
He said: “I welcome the Sun’s campaign against rip-off credit.
“Interest rates have never been lower, yet many borrowers are suffering financially brutal experiences through these sharks.”
And Labour MP John Woodcock commented: "These loans have been a scourge on our society for years now, preying on people who are just trying to get by, dragging them in to an endless cycle of payments with extortionate interest.
"I am backing The Sun's campaign because it is long overdue that the government did something to regulate this type of lending, and protect working people from these devious opportunists."
WE never want you to pay more than double the amount you've borrowed - whether it's for a new sofa or a loan to help pay your bills.
That's why The Sun has launched a campaign calling for a cap on the total cost of rent-to-own loans and doorstep lending at double the original price or loan amount.
A similar cap was introduced for payday loans in 2015 and since then the number of people struggling with unmanageable debts to those lenders has more than halved, according to Citizens Advice.
People on the lowest incomes, living in the poorest places, are paying a poverty premium – up to 7 million people have resorted to high-cost credit, according to the Department for Work and Pensions.
People whose wages or benefits don't stretch far enough need to borrow from rent-to-own or doorstep lenders to help pay for things such as an unexpected bill or to furnish their homes.
These come with exorbitant rates of interest – more than 1,500 per cent in some cases of doorstep lending.
It is scandalous that one mum who borrowed cash to help keep a roof over her family's head and ended up paying back over THREE times the original amount.
It's time to stop the credit rip-off.
Here's what we demand:
Rent-to-own
Doorstep lending
MPs slammed rent-to-own companies including BrightHouse and Perfect Home, who together with the big doorstep lenders such as Provident and Morses Club made around £1billion in revenue in 2017.
Labour MP for Walthamstow Stella Creasy, who also campaigns for fairer credit - including tougher rules for payday loans and high interest rate credit cards for a number of years – added: “These companies have preyed on people struggling to make ends meet – that’s why we need to change the law so no one gets stuck in a debt trap by capping what people pay.”
Her colleague, Rachel Reeves, MP for Leeds West, said loans from "vultures" were creating misery for thousands of Brits.
She told The Sun: "Unscrupulous lenders prey on vulnerable people by charging sky-high interest rates on their loans when they know borrowers are already struggling to make ends meet.
"It is time the Government took urgent action against these vultures and the misery they create with their rip-off doorstep loans and rent-to-own schemes."
