SIR – In our area, there are lenders who charge 1,200 per cent APR and are allowed to get away with it. I think it is about time that we had proper legal controls to stop this, as happens in most of Europe, the USA and Canada.
It is a sad fact that better-off people in our community pay less for credit, while hard-working families on a low income often have little choice but to go to the legal loan sharks when a crisis hits.
The UK is one of the few industrialised countries that doesn’t have a ceiling on the total cost of credit. When the new ‘Financial Conduct Authority’ regulator gets going next year, it should have the power to impose caps – to protect consumers from the ludicrous charges lenders are free to levy.
I want the total cost of credit, rather than APR, capped. This ensures that the caps do not distort the market, and lenders cannot wriggle out by applying high administration fees or repayment charges.
With the pain the country is going through, we need to help low-income households to be more resilient to cycles of debt and poverty.
Earlier this year, more than 400 MPs showed some support for these measures.
Emmerson Walgrove, Parkfield Road, Manningham
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