Liberal Democrat MP for Leeds North West, Greg Mulholland MP, has tabled an Early Day Motion (EDM) in the House of Commons calling on the Government and regulators to support the 2356percent Facebook campaign and take action to ensure fair payday loan rates for borrowers.

Greg said: “These companies are tricking people into thinking that they offer a convenient solution to bridging the gap before pay day, when in reality they are charging extortionate rates.

“I think the public need to be made aware that such extremely expensive credit represents the migration of loan shark style lending from the doorstep to the internet browser."

The EDM, which was tabled on 29 March 2010, states: "That this House notes that, despite irresponsible sub-prime lending and inappropriate borrowing precipitating the liquidity crisis and subsequent recession, sub-prime lenders are currently advertising money within the hour that is described as fast and flexible, with excessive typical annual percentage rates of 2,356 per cent. in the case of QuickQuid and 2,689 per cent. in the case of Wonga; believes that television advertising of such extremely expensive credit represents the migration of loan-shark style lending from the doorstep to the computer desktop; further believes that lending of this kind can prove both socially and financially irresponsible and that the Government and appropriate regulatory authorities should insist on the application of the regulatory principle of fair treatment of consumers which currently applies to savings and investments in the UK to sub-prime lending products to protect vulnerable consumers; and further believes that in the interim the Government should cap interest rates on sub-prime personal lending products and encourage the conditions for and promote the benefits of the establishment of social enterprises, such as credit unions, to create an alternative for consumers in need to turn to."

The tabling of the EDM marks the start of a new lobbying stage in the 2356percent according to campaign organiser, Ian Thomas.

He said: "We are delighted that Greg has taken the time to draw attention to the issue of excessive annual percentage rates (APRs) that are being charged by 'payday' lenders in the UK by tabling the Early Day Motion in the House of Commons.

"As a nation we are continuing to pay the price for irresponsible lending practices that encourage inappropriate sub-prime borrowing. No matter what their claims, businesses like Wonga.com, Quickquid and Skint.com should not be able to lend even the smallest amount of money at such high costs to consumers. Borrowers should be afforded the kind of regulatory safeguards that savers and investors enjoy, and that means product terms should be fair to consumers.

"The 2356percent campaign is just six weeks old but is growing all the time. The more people take part in the campaign through our Facebook Group the more chance we will be able to shape the future of 'payday' lending in the UK."