AN MSP has hit out at the Scottish Government after being told it would not mount an advertising campaign warning against pay day loans.
Labour's Kezia Dugdale said the Government was failing to protect the public after Enterprise Minister Fergus Ewing told her it would not be appropriate because it did not have the power to regulate lenders.
Ms Dugdale said interest rates on pay-day loans can be up to 4000%, leading to huge repayments.
She said: "In 2010/11 the Scottish Government spent over £300,000 advertising against smoking.
"If the Government can advertise about the dangers of seriously damaging your health, why can't it advertise against seriously damaging your wealth?
"The Government should stop carping on about their lack of powers and look for creative solutions to protect the public. They are once again failing the Scottish people."
Ms Dugdale said that, with a budget of £7 million a year for public information work, the Government could afford to warn people of this "predatory" industry.
Mr Ewing said interest rates were governed by the Consumer Credit Act and responsibility lay with Westminster.
He said he had written to UK Minister Norman Lamb seeking greater regulation and urging the UK Government to consider a cap on interest rates.
He added: "In the meantime the Scottish Government will do all it can to ensure those who need to borrow money have access to appropriate advice."
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