A leading shadow Cabinet member has backed David Fishwick’s crusade to end the stranglehold of “immoral” pay day lenders on struggling families.
Shadow Business Secretary Chuka Umunna MP gave Mr Fishwick his support during a visit to Burnley Savings and Loans which featured in the Channel 4 show “Bank of Dave”.
Mr Fishwick is set to do battle with pay day loan companies which he branded a “rip off” in a new TV programme to air later this year.
Mr Umunna, who has responsibility for business, innovation and skills, voiced his support for the Sabden businessman’s campaign to rein in “predatory” lenders.
He said: “It is absolutely something that needs to be addressed. They are charging ridiculous annual percentage rates of several thousand per cent.
“I truly believe it is immoral. Their business models are predicated on people not being able to fulfil their obligations under a loan thereby defaulting and being subject to extra charges. And that I have a problem with. It is a grubby way to make money.”
Mr Umunna said that it was imperative to find a solution. He said: “What we need is a different model and that’s what Dave is working on so people don’t feel there’s no option but to approach these people in the first place.
“I really do think we need a different model. That’s why I am really excited about what Dave is doing here.”