A city council is blocking access to websites offering payday loans and stopping such lenders from advertising on billboards and bus stops.
Labour-led Plymouth city council is believed to be the first to take such action against companies that it believes are causing thousands of its residents to run up devastating debts.
It won't be the last. Oh, dear me, no...
Chris Penberthy, the cabinet member for community development, said: "Plymouth's advice agencies are taking calls daily from people who are running up huge debts that are causing stress and hardship to them and their families. We need to protect people and make it difficult for payday loan companies to operate in our city."
Because, god forbid there ever be consequences to your choices - took out a loan, didn't pay it back and now you're in debt? Why, how can that be
your fault?
Penberthy said he hoped other local authorities would follow Plymouth's lead.
And you know what? I just bet they do.
Plymouth has pre-empted any action that the Financial Conduct Authority may take when it assumes regulation of payday lenders in April 2014.
So laying down the gauntlet for the FCA to go even further?
Representatives of payday lenders accused Plymouth of denying consumers choice. Russell Hamblin-Boone, chief executive of the Consumer Finance Association, said: "The council is effectively denying choice to local residents without fully understanding either the short-term lending industry or the way people are managing their finances in 2013.
"Research shows that 85% of payday customers have no trouble paying back their loans, so the council's belief that the loans are detrimental to those that take them is misplaced and not based on evidence."
Pft! Don't confuse them with
facts. They have their own feelings to consider. Facts just get in the way..
Potential borrowers can always go to Church, instead.
ReplyDeleteLabour-led Plymouth city council is believed to be the first to take such action...
ReplyDeleteActually, no. Several other fruit-cake leftie local authorities have pressed the pompous button too!
Anyway, I hope the people of Plymouth are asking if the Labour Party are making a contribution to the council's finances to cover for the lost advertising revenue? Or will they just see their council tax bills rise along with a city wide increase of 'Call to advertise on this bus' posters?
Speaking of council tax; I assume the council will be sympathetic to those who previously took out temporary pay-day-loans to help cover CT arrears, unexpected parking fines, larger utility bills and rent payments when the council buggers up someone's benefits? No?
Oh well, I guess they could always blame those evil Tories.
The question is; "Why are people taking out these kinds of loan in the first place ?"
ReplyDeleteCould they be struggling to pay their bills etc ? You know the one's. Like electricity that is getting dearer and dearer due to Green energy policies. Or the water rates and council tax coupled with their numerous charges to pay for their inflated salaries and generous pensions.
May be if they took less money from us then may be, people might have a bit more and have no need for such services.
Perish the thought
"Potential borrowers can always go to Church, instead."
ReplyDelete:D
"Oh well, I guess they could always blame those evil Tories."
Why not? It works!
"The question is; "Why are people taking out these kinds of loan in the first place ?""
Refusal to face reality and live within their means?
Refusal to face reality and live within their means?
ReplyDeleteIn too many cases that's probably true. But there will also be those that use pay-day-loans to manage unexpected financial blips. People who perhaps cannot source short term loans from anywhere else... although I'm sure Plymouth has just created an opening for some enterprising 'pay-up or we'll break your arm' outfits.