Excessive interest charging companies and banks get a setback from Labour party

London (Ask4paydayloan) Dec 08, 2008 : As per Jim Devine, Labour MP, all strore cards and loan companies must be completely banned from charging excessive interest rates. He said that any such institution must be banned if it charges more than five percentage points above the base figure of Bank of England.

He also said that there are many companies that are targeting its hard-pressed customers with a highly condemning rate of 1,355% APR. As per Devine, even some of the banks were charging an interest rate as high as 29.9% when the bank rate was reduced to 3%. He remarked that it's high time that the credit charges be crunched. Some of the highest charging companies were charging as much as 1,355 percent on Payday Loans. As per the Labour MP, the store cards at Burton, Woolworths and Dorothy Perkins are facing rates of 29.9%, while those credit card users who are using the Argos payment cards are charged up to 222.7%.

Terming this scenario as quite unacceptable, Devine introduced a Bill, which is aimed at capping the sky-rocketing interest charges. The bill will definitely come as a much-awaited relief-ensuring step for all those credit card and other type of loan borrowers, who have been struck with the 'havocs' of debts.

Other Financial News:

English economy in a scrape as rates stoop down to unbelievable lows
Effect of rate cut needs time to come in full force, Sentance