Payday loan laws

The Kirk is calling for greater regulation of payday loans and the interest rates they charge (your report, 22 May). It echoes a call by Dame Anne Begg MP to the Westminster government. Why do both find there is “little political appetite” for putting a cap on interest rates?

Arguably because governments run on credit and political leaders are in thrall to the money markets. However, it is people made vulnerable and weak by economic circumstances who need protection from everyday exploitation. Surely for this group, the government could find ways of enforcing the Kirk’s programme of economic ethics?

Ellis Thorpe

Old Chapel Walk

Inverurie

News that the UK government has blocked plans for a cap on the interest payday loans companies can charge is extremely worrying, not least for the most vulnerable in our society. Many of the thousands of families and individuals Shelter Scotland’s advice services have helped this year were living on a knife edge and felt they had no other option but to turn to payday lenders. Payday loans may seem like a quick fix but with interest rates of up to 16,000 per cent annually they are completely unsustainable and can quickly lead to snowballing debt, eviction, repossession and homelessness.

We will continue to be there for those who need our expert housing advice, but our worry is that, with government cutbacks leading to increased hardship, even our best efforts will only scratch at the surface of the problem.

We urge anyone who is experiencing problems in paying their bills to seek advice sooner rather than later.

Graeme Brown

Shelter Scotland

South Charlotte Street

Edinburgh