Lazarowicz sets sights on loan sharks

EDINBURGH North & Leith Labour MP Mark Lazarowicz is calling for action to end legal loan-sharking.

Currently, lenders can charge any price they like for credit and Mr Lazarowicz said some loan and credit companies charged 82 for every 100 they loaned.

He said: "Loan sharks are making wildly excessive profits at the expense of some of the most vulnerable people in our society by charging sky-high interest rates for short-term credit.

"The people who turn to loan sharks are often doing so to pay basic bills and make ends meet rather than because they are trying to live beyond their means.

"We need action to cap the cost of credit and ensure there is free, easily-available independent advice for people trapped in debt as well as alternative sources of credit that people can turn to, such as credit unions or a new post bank."