Susan Elan Jones MP has called for tougher action on high cost credit.

The Clwyd South Labour MP, who is a member of the All Party Parliamentary Group for Debt and Personal Finance, joined 3 other MPs and 2 members of the House of Lords at a cross-party meeting with the Financial Conduct Authority.

Susan Elan Jones MP said:

“I am pleased Britain’s financial watchdog, the FCA is undertaking a serious review of high cost credit practices. I also welcome the fact that Treasury officials were present at our meeting in Parliament.

“In a previous Parliament, the FCA took real action against payday lenders – and it really needs to do so again this time.

“At the moment, we have a serious problem whereby rent-to-own companies like Bright House can charge huge amounts for basic household items – something that traps some of the poorest people in our communities in a vicious cycle of debt. Many of the people who are affected have jobs, but are badly affected because pay rates are not keeping up with how much things cost.

“We also urgently need action to tackle the menace of permanent bank overdraft debt – something that affects 2.1 million people. I agree with Debt charity StepChange that the FCA should investigate unaffordable lending in the overdraft market as part of its current review.

“We need caps on lending rates, Government fiscal incentives to support more ethical lenders and in some cases, the restoration of funding for basic items”.