PROUD TO BE BRITISH!

SIR MERVYN KING, GOVERNOR OF THE BANK OF ENGLAND, COULD BANISH EVIL PAY DAY LOAN SHARKS FROM THIS KINGDOM. 

KING RICHARD THE LION-HEART
CHAMPION OF A PROUD NATION

In the UK, the Office of Fair Trading that licenses UK loan sharks to charge whatever they can force borrowers to pay – legalising APR (annual percentage rates) charges from 1,000% to more than 4,000%, have expressed concerns about “repeat” or “roll-over” borrowers.

What it means is that the poorest and most desperate people – forced to borrow midweek or midmonth to buy food or travel to work – are trapped in a constant cycle of borrowing at Mafia Loan Shark rates – enforced by heavy legal penalties, courtesy of The British Justice System, stoutly defended by Prime Minister, The Rt. Hon. David Cameron MP – on behalf of the Free Markets, who are the richest in society.

The “industry” wormed its way into the UK from the USA, after Thatcher removed all caps on loan charges – setting the tone with her unprecedented, punitive and business wrecking Bank of England Base Rate at 17.5%, which crippled the UK for 20 years. She and Reagan opened the doors for gangs of sociopathic mediocrities to attack and leech off the efforts of their workmates, and to suck the economy dry.

The average grand total loaned by UK loan-sharks is about £1.2 billion. The average individual loan is £300 made to about 1 million customers, four times a year. At 4,500% a year – the £300 costs the borrower £13,500 – half the UK Living Wage.  The total of loans to households and businesses in the UK is about £1.2 trillion; so the Loan Sharks loans extend 0.1% of the credit.

In all justice, fairness and neighbourliness, here is what should be done – today: The Bank of England should add £1.2 billion to Quantitative Easing (QE); pay off all loan shark personal balances; revoke the loan-shark licenses; CAP all loans at a maximum of 5% - which is 10 times the current Base Rate – and set up a national Pay-Day-Loan facility via Post Offices – at 5% per annum.

For God’s Sake: Come on Sir Mervyn King – before you quit as governor of The Bank of England on your massive lifelong pension – do this good thing.

The City would not be in the slightest affected – they would not even notice the impact. The loan-sharks would take their ill-gotten gains back to the mean streets of USA.  The Courts would be cleared of much nasty business. Rents would get paid. The one million families would be greatly relieved. The QE impact would immediately assist the smallest businesses. Britons could hold their heads up again – instead of being complicit in some of the worst bullying this nation has ever known.

END OF LOAN SHARKS?

http://www.express.co.uk/news/uk/382387/Crackdown-on-payday-loan-firms

The Office of Fair Trading is handing the 50 biggest lenders a 12-week deadline to stop “widespread irresponsible lending”. Any firms which fail to co-operate will have licences revoked. The move comes after a damning OFT report into the sector.  The Government is also planning to limit the number of TV adverts firms can put out and the times they can advertise. New rules will force them to display interest rates clearly. But they will not be capped. One leading player in the the £2billion payday loans sector, Wonga, whose annual interest rate is put at 4,214 per cent, said that it plans to co-operate fully.

http://en.wikipedia.org/wiki/Payday_loans_in_the_United_Kingdom