MP’s warning on pay day lenders as OFT investigates

Angus MP Mike Weir has welcomed the announcement that action is being taken against ‘pay day lenders.’

The Office of Fair Trading (OFT) are cracking down on their practices and Mr Weir has urged constituents to think carefully before taking out such loans.

He said: “The OFT investigation has uncovered some evidence that some pay day lenders are acting in ways that have caused them to open formal investigations into their practices.

“In these difficult times when many people find it difficult to make ends meet these lenders are making serious inroads with large amounts of TV advertising and shop fronts on many of our High Streets.

“These companies operate on the promise of making loans available almost instantly but the interest rates charged on many of these small loans are, however, eye watering and many borrowers find themselves in serious difficulties.”

Mr Weir added that everyone should consider what alternatives are available and urged constituents to consider whether a credit union would offer a better alternative.