Three universities have banned adverts from high-cost payday lenders after fresh fears were raised that unscrupulous firms are targeting hard-up students. This is from the Independent…
Northampton, Northumbria and Swansea have committed to never allowing payday lenders to advertise on their campuses and the National Union of Students is today launching a campaign to encourage more universities to join them.
“It’s clear that some payday lenders are targeting vulnerable students and the Government has so far failed to act so it’s important we do everything we can to limit their ability to reach our campuses,” said Pete Mercer, NUS national vice-president (welfare).
“Students are struggling to make ends meet and this is having a real impact on their well-being and their education.”
Payday lenders are currently under investigation by the Office of Fair Trading, which has proposed referring the sector to the Competition Commission, amid accusations of irresponsible lending and encouraging vulnerable people to take on expensive debt they’ll never be able to repay.
With interest rates quoted at more than 4,000 per cent APR, lenders have been accused of rolling over loans pushing people into a deadly spiral of debt.
Do payday loan companies play any legitimate useful role for students? Should students ever be encouraged to use them? Tell us what you think, or share any experiences you have of people using them, on twitter or in the comments…