Student union calls for a ban on ‘payday loan’ adverts on campus!

Payday loansIf you are a regular visitor to our blog, you will probably have noticed that we have written about ‘payday loans’ in the past.

Payday loans are usually short-term loans for relatively small amounts – the idea is that the loan will tide you over until payday, at which point you pay it back.

However, concerns have been raised in the last year over the sky-high interest rates that many payday loan firms apply, and their often ‘irresponsible lending practices’. At the end of last year, the UK Government announced that it would crack down on payday loan firms, imposing a limit on internet rates that can be charged.

Now, The University of Northampton, Northumbria University, and Swansea University have all banned payday loan adverts on their campuses, and the NUS (National Union of Students) has called for other institutions to join in the campaign.

The industry, however, has said it will do nothing to stop rouge traders, with The Consumer Finance Association (CFA), which represents many of the major payday firms, pointing out that only some students, in regular employment, would be eligible for a payday loan from a reputable provider.

What do you think about payday loans?

Read the full story on the BBC News website.

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