SCOTS Law should be used to tackle today's punitive pay-day lenders by re-invoking the old crime of usury, according to veteran Nationalist Margo MacDonald.
She has lodged a motion at Holyrood calling on the Scottish Government "as a matter of urgency" to consider "re-introducing the crime of usury in Scotland".
She said: "Whilst events are beginning to gather pace, whatever is eventually done by the UK Government by way of further regulation, a move by the Scottish Government now may save thousands of Scots falling into serious debt because of these high cost loans."
The Scottish Government has stressed its frustration at its inability to tackle the problem. The First Minister said last week: "We need to cap the interest rates that payday lenders can charge, much like the authorities have done in many European countries, such as Germany, Japan, Canada and some states in the United States."
Ms MacDonald insisted: "This issue is so important that if politicians say they cannot fix it I will be up there to put the pressure on Westminster and the EU."
Asked whether the legal powers involved simply were not there, she replied: "As Mick McGahey once said, "We're not going to be constitutioned out of action.' It's a matter for urgent investigation and the Scottish Government must show leadership."
Mr Salmond said: "We must restrict the ability of payday lenders to 'roll over' the debt, wrapping up an outstanding loan in a further credit agreement that can easily escalate and lead to severe repayment problems."
He added: "The regulation of payday lenders is currently reserved. With independence we will be able to take action to protect consumers and ensure that the practices that are bringing such misery to many of the poorest in Scotland are brought under control."
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