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Labour could introduce levy on payday lenders

A share of the profits from payday loans could go to not-for-profit lenders in future, shadow chancellor Ed Balls said

14 May 2014
Loan Money

Visiting Stevenage Credit Union in The Hyde – as well as The Hyde Bakers and Greenside Studio – the MP said payday lenders could face a levy if Labour were elected.

Money raised would be used to support not-for-profit organisations offering financial support, like credit unions.

He said: “Of course the credit union has been here almost 20 years, but there has never been a time when credit unions were more important.

“Because many people are struggling with the cost of living, with trying to make ends meet, they’re worried about how they can make their finances add up.

“With the payday lenders, they’re often charging a huge amount of interest; credit unions are a very good local and trusted alternative.”

He continued: “I want – and I promised Sharon and the team at the credit union – that we will look at what more we can do to support local credit unions like Stevenage.

“One thing we’ve said we’d like to do is have a levy on the payday lenders to have more help for credit unions and we just need to make sure that we can tailor that so it really works.”

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