How will the government administer the proposed changes to the crisis loan system?
While the fact that the government is suggesting interest charges approaching 30% for crisis loans in the UK has attracted a serious backlash from government MPs, there would appear to be worse to come. It has been revealed that the government is currently investigating contracting out the service to official "loan companies" which many MPs are describing as "loan sharks".
There is a suggestion that this is the thin end of the wedge and once the system has been contracted out, or to put it another way privatised, this will spell the end of central government in many parts of the UK. Political observers believe these types of moves are more akin to the Conservative party but even they have suggested they would never charge crisis loan recipients interest when you consider their financial position already.
Some MPs are suggesting that Gordon Brown and his inner cabinet have literally lost contact with the UK electorate because if this move goes through it would force further hardship on millions of UK families, many of whom by definition could well be Labour supporters. This on top of the 10p tax band debacle has seriously damaged the Labour governments voting support from many low-income families in the UK.
Share this..
Related stories
What is a Mortgage?
A mortgage is a simple concept, containing a few complexities designed to protect both the lender and the borrower in the arrangement. In a nutshell, a mortgage is where a lender, such as a bank or building society, gives a borrower a loan to enable them to purchase a property. They have a legal interest in the borrower’s property until the loan is repaid, and this is usually referred to as a Se...
Read MorePolice close down 1200 fake websites
It has been revealed that police have managed to close down more than 1200 websites which were selling "cut-price designer gear" as fraudsters continue their assault on the UK retail market. Even though these particular sites seem to emerge time and time again, against the backdrop of a very difficult economic situation, it appears that more and more UK consumers are looking to bag the bargain of...
Read MoreDid the worldwide recession actually start in the UK?
As the dust settles on significant financial troubles with the likes of AIG it has been revealed that up to £310 billion worth of toxic debt may have been racked up in a small Mayfair office in London. As the AIG situation starts to become a little clearer it is believed that a dozen or so members of AIG Financial Products may have been heavily involved in the substantial toxic debt which was tak...
Read MoreIrish debt rating on review
Moody's, one of the more prominent debt rating agencies in the world, has today confirmed that Irish sovereign debt is on review with a possible downgrade under consideration. If a downgrading was to proceed it is likely it would be a one step downgrade to an Aa3 rating. However, this is just the latest in a long line of bitter blows to the Irish economy, the Irish government and the Irish budget....
Read MoreCadbury takeover set to become bitter
While privately it is rumoured that many Cadbury directors believe that Kraft foods will not walk away from a potential deal in the short term, the takeover battle between these two giants is set to become bitter over the next few weeks. Today we saw Cadbury's request clarification from banking giant Merrill Lynch which had apparently indicated that the chief executive of Cadbury had suggested tha...
Read More