‘Considerable’ support for ban on payday loan advertising

Some 70 per cent of people would back a total ban on payday loan advertising.

Research carried out by Channel 5 and YouGov discovered there is over…

Some 70 per cent of people would back a total ban on payday loan advertising.

Research carried out by Channel 5 and YouGov discovered there is overwhelming support for the measure. If the companies were given such an order, they would no longer be allowed to advertise on television, radio, online, in newspapers and on posters.

One of the main areas for concern is that young people or those who cannot afford to repay the loans are being bombarded with information about them.

With a recent study by ING – on behalf of the financial education charity pfeg (Personal Finance Education Group) – finding that 60 per cent of adults think money management is tougher now than it was ten years ago, it's clear the situation needs to be addressed. 

Citizens Advice chief executive Gillian Guy is calling on the payday loan industry to act "fairly and responsibly" in order to make sure consumers are given the right level of protection.

"A ban on advertising to children and people without a job would stop payday loans appearing as the norm and could stem the tide of people on limited incomes struggling with mountainous debt caused by payday loans," she added.

Ms Guy remarked the topic is particularly pertinent at this time of year, as people are typically "feeling the pinch" after an expensive festive period. This means they could be more susceptible to taking out a high-interest loan. 

Last month, the Business Select Committee produced a report which called for a ban on payday loan advertising during children's TV programmes. This move was backed by Ms Guy, as she labelled the practice of targeting youngsters as "immoral". 

Under the terms of the Good Practice Customer Charter, payday loan firms agree to carry out sound, proper and appropriate affordability assessments before handing money over to anyone. 

By Amy White

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