Press Release, 16th December 2013
Pay Day Loan Debate
Greenock and Inverclyde MSP Duncan McNeil has said that there are wider issues that must be addressed to stop people racking up huge debts on payday loans.
These include the issues of poor pay and job insecurity. The MSP made the point in a recent debate in Parliament on Payday Loans.
According to the StepChange Charity between 2011 and 2012, the average amount owed by local people involved with payday loan companies increased by £728 to £1,957.
In 2012, 16 per cent of the charity’s clients in the Inverclyde Council area had payday loans. That figure jumped to 31 per cent in the first three months of 2013.
Duncan McNeil said:
“With work that doesn’t pay, zero hour contracts as well as increases in the cost of living it’s not surprising that many working people are turning to these loans just to get through the month”
“The recent plans by the Financial Conduct Authority to put stricter requirements for payday lenders are welcome but if we are to fully address the issue we must recognise the wider factors at play. We need to provide people with job security and pay them a Living Wage.”