Government ‘must warn’ on loans
Lothians Labour MSP Kezia Dugdale said the short-term loans, with interest rates of up to 4000 per cent APR, left many desperate Scots facing extortionate repayments after borrowing as little as £100.
The government has said it cannot act against payday lenders because regulation of such activities falls under consumer legislation, which is a Westminster responsibility.
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Hide AdHowever, Ms Dugdale claimed it could still warn people of the dangers of payday loans with a major publicity campaign.
She wrote to enterprise minister Fergus Ewing, asking him: “If you are unable to regulate, would the Scottish Government consider undertaking a comprehensive advertising campaign exposing the dangers of payday loans and lenders?”