Another scandal from the minds of the Conservative government and the Department for Work and Pensions:
Because Universal Credit does not provide enough money for people to survive, they are being forced to take out loans at enormous interest rates, putting themselves even deeper into debt and putting all their possessions at risk.
That’s the word from the chief executive of the Financial Conduct Authority (FCA), and it indicates an appalling dereliction of duty by the Conservative government.
What new, nasty game are ministers playing at the expense of the poor and vulnerable?
Do they own the loan companies?
People on Universal Credit are turning to payday lenders to make ends meet, according to the man in charge of policing Britain’s banks.
Andrew Bailey, chief executive of the Financial Conduct Authority (FCA), said there is concern about UC claimants having to borrow cash at astronomical rates of interest from so-called “payday lenders”, particularly during the much criticised waiting period before they receive any benefit.
Mr Bailey, a vastly experienced central banker and former Deputy Governor of the Bank of England, is concerned about people being stung by high-cost credit and Rent To Own (RTO) deals, provided by firms such as BrightHouse where goods are bought on over-the-odds credit, and said that is why the FCA is cracking down on both those types of lender.