The University鈥檚 Management School is to host a discussion on the practice and ethics of interest rates of more than 4鈥�000 per cent that are charged by payday loan companies and some other commercial lenders.
Labour MP for Walthamstow Dr Stella Creasy and Professor Simon Wolfe from the Management School will give their views on Friday 18 November at 6.00pm. The talk will be held in room 3001, building 46 (Physics).
Stella Creasy has long argued that British people do not need the high annualised 鈥榲ulture-like鈥� interest rates of above 4,214 per cent that payday loan companies, online lending companies and similar concerns typically charge for their services. Her private member鈥檚 bill proposes legislation to cap these rates to more modest levels.
The number of people running into debt through payday loans has quadrupled in two years, according to the Citizens Advice Bureau. Advisers say it is too easy to obtain such credit and are calling for tighter regulation.
鈥淭he high-cost credit market makes use of the fact that its customers lack access to other forms of mainstream credit. A quarter of the customers of these companies cannot access any other form of credit,鈥� says Stella.
Professor Simon Wolfe lectures at the University of Southampton on banking and finance. He will explain how commercial lenders determine the rates they charge their customers.