Government ‘must warn’ on loans

THE Scottish Government has been urged to warn people of the dangers of payday loans which leave thousands in spiralling debt each year.

Lothians Labour MSP Kezia Dugdale said the short-term loans, with interest rates of up to 4000 per cent APR, left many desperate Scots facing extortionate repayments after borrowing as little as £100.

The government has said it cannot act against payday lenders because regulation of such activities falls under consumer legislation, which is a Westminster responsibility.

However, Ms Dugdale claimed it could still warn people of the dangers of payday loans with a major publicity campaign.

She wrote to enterprise minister Fergus Ewing, asking him: “If you are unable to regulate, would the Scottish Government consider undertaking a comprehensive advertising campaign exposing the dangers of payday loans and lenders?”