Chris Leslie MP, Labour's Shadow Financial Secretary to the Treasury, responding to reports that Ministers are about to concede the principle of Labour’s amendment on tougher regulation of payday lending and high cost credit, said:
“In the face of certain defeat in the Lords, the Treasury have been forced to accept the principle of Labour’s amendment and give the new financial regulator a clear power to protect consumers from extortionate interest rates.
“But it shouldn’t have taken nine months since we tabled this amendment for the Government to cave in. A growing number of people from across the political spectrum have been uncomfortable with the Treasury’s stubborn refusal since March to take tougher action – so this change of heart is welcome news.
“We now need the new Financial Conduct Authority to act on these new powers and tackle those high-charging payday lenders who are exploiting some of the poorest and most vulnerable in society with exorbitant charges in loan after loan.”