Dave Thompson, SNP MSP for the
Highlands and Islands and a Vice-President of the Trading Standards
Institute has today, 21st June 2010, written to the new Secretary of
State for Scotland, Michael Moore MP, urging him to ensure the UK Coalition Government delivers on its pledge to tackle extortionate
interest rates forced upon many low income borrowers.

Mr Thompson’s call comes in the wake of
an OFT report into high cost credit, which stated that the ‘fundamental
and longstanding issues’ of high interest rates could only be tackled
at Government level.

The UK Coalition Agreement included a
commitment to ban excessive interest rates, as did the Liberal Democrats
manifesto for the election in May.

In his letter, Mr Thompson drew
attention to these commitments as well as highlighting evidence that
suggests Scotland has a particularly acute problem with unaffordable
consumer debt and high interest rates.

Mr Thompson commented:

“Far too many Scots are being exploited
by unscrupulous lenders charging sky high interest rates.  Many low
income people cannot access mainstream credit, and so have no choice but
to borrow from so called sub prime lenders who think nothing of
charging interest rates with treble or even quadruple figures. 

"This problem exists across the UK, but
there is evidence that Scots have higher levels of unsecured borrowing
and are more vulnerable to excessive interest rates.  It is therefore
incumbent on Michael Moore to use his key position to stand up for
Scotland and push for the speedy implementation of the Coalition's
promise to ban these sky high interest rates.

"To their shame, the previous Labour UK
administration refused to take action to protect low income people from
irresponsible lending, despite countries across Europe from France to
Germany using a limit for interest rate charges.

"The new UK Coalition Government have
made welcome statements and commitments to tackling this issue – but
they will be judged by deeds, not words, and must act on their pledge.

"Michael Moore has the opportunity to
use his office to make a real difference to the many Scots suffering in
the face of extortionate interest rates and work with his colleagues in
the Treasury to take immediate and decisive action.