Plaid warns against disreputable lenders
Plaid Cymru’s Social Justice Spokesperson, Dai Lloyd AM, has today warned people against getting into unmanageable debt over the Christmas period.
The Plaid AM for South Wales West warned that people should avoid accepting credit from loan sharks and said that anyone who has borrowed money from an illegal money lender or loan shark should seek help from the police or their local Citizen’s Advice Bureau (CAB).
Dai Lloyd AM said that he was particularly concerned by a recent increase in the number of his constituents contacting the Citizen’s Advice Bureau with debt related problems following the economic crisis.
Dai Lloyd AM welcomed the work that has been done by the Plaid driven Assembly government in supporting the development of Credit unions. He also criticized the London Labour government for not doing enough to tackle doorstep lenders and loan sharks.
Plaid’s Social Justice Spokesperson Dr Dai Lloyd AM commented:
“With Christmas upon us, people are under considerable pressure to spend more money than they can afford. I have been concerned by the number of my constituents who have recently contacted the Citizen’s Advice Bureau with debt related problems. I believe that the situation has worsened due to the current economic climate. I would urge people to think carefully about where they get credit from. I am concerned that in these difficult economic times, people may be tempted by disreputable lenders such as doorstep lenders and loan sharks who could lead people into uncontrollable levels of debt. I would advise anyone who is having trouble with disreputable lenders to seek help immediately from the police or the Citizen’s Advice Bureau as the lender may well have behaved illegally.
“Debt is a serious issue, and unmanageable debt can have far reaching consequences in terms of family life and mental health. It is something that can affect people across different communities both rural and urban. It is vital that people in serious debt do not feel isolated as this can make them vulnerable to the exploitation of loan sharks and other disreputable lenders.
“The Plaid driven Welsh government is committed to the establishment and development of credit unions, as a form of social enterprise, in all parts of Wales. So far the One Wales government has achieved all-Wales coverage of Credit Unions, has established access for secondary pupils and helping credit unions to offer more Child Trust Fund accounts. Credit Unions have a hugely important role to play, offering, not just affordable credit but also valuable advice on budgeting.
“Politicians must look at other ways of protecting vulnerable people in debt. Plaid Cymru has campaigned in Westminster for a cap on interest charged by lenders. This would be an invaluable tool in tackling problems with doorstep lenders and loan sharks. Plaid will continue to campaign for this and any other means of tackling the problem of disreputable lenders.”
