One MP has shown concern that an increasing number of former servicemen and currently serving Armed Forces members turning to instant short term loans for their financial needs, stating that these providers of cash loans may be taking advantage of them.
Walthamstow MP, Stella Creasy, said that she had fears that the financial health of UK servicemen was in danger due to payday advance providers may be targeting them deliberately. Stating that British Armed Forces, which choose to make significant sacrifices in order to safeguard the nation, need to be protected, the MP said that these loan businesses that may be little more than legal loan sharks preying on those Brits most in need of financial help.
Many lenders offer loans specifically marketed towards members of the military, with some even putting specialised sites up on the internet tailored for servicemen. The MP said that these lenders are suspect because of the very high interest rates that accompany each loan, some with APR interest as high as 2,000 per cent or higher.
Proponents of instant short term loans have struck back against the MP’s words, pointing out that most of these loans are extremely short-term and that holding an APR on a 30 day loan up to to a traditional loan with a 12 month term is not going to provide an accurate comparison. Payday lenders also said that members of the Armed Forces, like many Brits, are not earning enough in order to cope with the rising costs of living, making it exceedingly hard to make ends meet with the rampant inflation currently gripping the UK.