Bookkeeping

Cost of living crisis: MPs urged to ban high-cost debt adverts – London Business News

A top entrepreneur and FIRE campaigner who successfully fought banks in court is now campaigning for major legal changes to the way finance is sold

An entrepreneur who has won awards for promoting opportunities for the disadvantaged is calling for a ban on high-cost debt advertising.

Alan Donegan, whose company Rebel Business School won a Queen’s Award for Promoting Opportunity last year, has launched a petition on Parliament’s website to the effect.

His petition calls for a ban on finance advertising by 12% and above – affecting the vast majority of credit cards, payday loan companies and many other financial products.

Donegan says the cost of living crisis is hurting families and says they are easy prey for unethical lenders whose products are only likely to cause serious financial harm.

“People are really struggling with rising prices in all areas. The last thing these people need is to pay the interest on their debts as well.

“Yet we see advertisements for debt products at 25-30% interest, and more.

“People who agree to these terms will end up drowning in debt and the impact on families can be appalling. It is simply wrong that banks are promoting debt at such a high cost.

In Donegan’s petition, he notes how, as a young man, he was seriously affected by debt.

“The banks tried to take our family home. The judge ordered it taken back and there was never a worse feeling than when that gavel fell.

“I don’t want anyone else to have that feeling again.

“We appealed. I learned the law, represented my family in court and won. It was one of the hardest and most stressful things I have ever done.

“Banks should know. I’ve fought you before and won – I’ll do it again.

Later this month, Donegan and his wife, Katie, are hosting a completely free course called Rebel Finance School, to help people overcome debt, gain a better relationship with money and become financially independent.

They launched the first version in 2020 in response to the pandemic, attracting over 200 people to a free 10-week online course. Today, its membership numbers over 10,000 members and continues to grow.

“People are realizing the damage caused by debt and seeing that there are better ways to organize their finances.

“Katie and I have gained our financial independence and with it our freedom. We want to help others do the same.