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Who will enter the Bankruptcy Hall of Fame?

It’s almost time to close the piss-takers parade that is the ‘Bankruptcy Heroes’ poll and announce a winner. However, the audacious debt-dodging deeds of regular punters Phillip Hoare & Leigh Cooke, have put them way out in front of the chasing pack and this pair are currently neck-and-neck with 21% of the vote each!

An outright winner is needed so I can track them down to present them with their award: a copy of The Bankruptcy Diaries and an interview slot on this blog.

So, please cast your votes and decide who should enter the Bankruptcy Hall of Fame – should it be the ex-copper with many vices, or the smash ‘n’ grab chancer?

You can cast your vote by visiting the Bankruptcy Heroes page. Voting closes at the end of the month 30/11/2011

 Please do not be alarmed, I am not about to start a ‘Politician of the Week’ feature – once you’ve been ‘Clegged’ faith can never be fully restored – but I was nonetheless heartened to learn of MP Andrew Percy’s remarkably candid revelations about his own problems with debt during a Commons debate (on the Finance Bill) earlier this week. Percy revealed to the House how he had repeatedly maxed out credit cards and is still saddled with enormous repayments. The MP said:

“I certainly understand having debts to the tune of tens of thousands of pounds.

In my case, it was credit card debt, and I am not alone in that. It started at university and I went down the line of paying off one credit card by transferring it to another on 0% for a year or a number of months before conveniently forgetting that and maxing out the one that I had just cleared. I now pay about £600 a month to clear all my credit cards, which I have had to roll into a loan since my election. I understand what debt is like and I know how once someone is on the conveyer belt, it is difficult to get off, and that is just with credit card debt.”

Aside from being evidence of the extent to which debt culture has permeated all levels of society, Percy’s statement shows that we at least have some Parliamentarians with first-hand experience of the harmful effects of the debt industry; if credit, or debt (as they are one and the same), is to be more tightly controlled in order to prevent people’s lives from being ruined, then this can only be a good thing.

Leading the charge

The specific subject of the debate was a proposed amendment to Clause 11 of the Finance Bill, relating to high-cost lending: that most damaging sector of the credit industry which consists of companies who lend at extortionate rates to those who cannot get credit elsewhere, including payday and doorstep loan companies that also target the most vulnerable groups. Only this afternoon I saw a TV commercial from one of these companies, Wonga, advertising a 4,500% interest rate.


Could a doorstep loan be the answer to your problems?

 

 

Also deserving of special mention was the leading voice on the subject, Stella Creasy MP, who has been ardently campaigning for greater regulation of the high-cost credit industry for some time. Creasy told the House:

“the companies have specifically said that the lack of regulation in the UK compared with other countries makes it a target market for them.”

And,

“…in its ‘Keeping the Plates Spinning’ report, Consumer Focus estimates that payday lenders are expected to quadruple the scale of their operations in the UK in the next few years alone.”

Business as usual

Typically – in accordance with le libéralisme sauvage, which despite the crash and its fallout, shows no signs of being supplanted as the ruling ideology in Britain – those suffering most in these hard times are being pummeled for profit by the money-men and shareholders who operate these parasitic companies. Despite the best efforts of Andrew Percy, Stella Creasy and many others, the light-touch regulation mob prevailed and the motion was defeated by 273 votes to 228.

You can read the full text of the debate here.


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