Lewisham Council calls for action on pay day loan companies
COUNCILLORS have called for an end to "legal loan sharks", vowing to promote local credit unions instead.
Lewisham Council discussed the rise of pay day loan companies which charge whopping interest rates at a meeting last week.
Councillor Mike Harris told the meeting he had been charged £20 interest after taking out a £100 loan.
He said: "These companies use aggressive marketing strategies. Local residents have told me that leaflets are handed out by loan sharks outside Lewisham's job centres whilst people collect their benefits."
Cabinet member for community services Councillor Susan Wise said: "Borrowing to pay off other debt is a clear sign that personal finance is out of control. Pay day loans are short term fix for some and they should not be seen as a solution for people with a genuine long term financial need."
The council pledged to promote credit unions in the borough - community-based organisations that offer access to affordable credit and promote savings.