The Association of Christian Financial Advisers (ACFA) has welcomed the Government's decision to investigate payday loans. The Office of Fair Trading is to investigate payday lenders amid claims that they are taking advantage of people in financial difficulty and providing loans without checking that borrowers can afford to repay them. The ACFA is calling for legislation to cap interest rates. The group outlined its concerns in a letter to Chancellor George Osborne last December in which it expressed 'increasing dismay' over the manner in which payday loan companies were allowed to trade. The letter criticised the 'unfair and unreasonable' interest rates charged by lenders. According to the Independent, the typical APR charged by a payday lender is 4,000%. The ACFA is calling upon the Chancellor to introduce legislation to cap interest rates for all personal lending, including unauthorised bank overdrafts. 'There should be no place for the extortion of the desperate and vulnerable.'
Pray: for an end to what amounts to usury targeted at the financially most vulnerable. (Pr.28:8)