PAY-DAY loan websites that “target the poorest and most vulnerable people” are to be banned from computers in Liverpool's libraries and other council run buildings.
The move comes in the wake of new research that shows Liverpool people had one of the biggest average rises in payday loan debt in the last two years. In 2012 this was £1748, an increase of £463 on the previous year.
Access
“In the current economic climate there is a danger that more people resort to desperate measures but with payday loans they end up much further in debt because of the astronomical interest rates, which can be over 4,000 percent, these companies charge,” said Councilor Paul Brant, Liverpool’s Deputy Mayor.
“It is clear that payday loan companies are targeting the poorest and most vulnerable people.”
Liverpool joins several councils around Britain, including Wirral, have blocked payday loan sites.
Cllr Brant added: “As an authority we do not want to promote this sort of unethical lending so we are stopping public access to their websites.”
The council is urging people to turn to credit unions for cheaper ways of borrowing and to talk to debt counsellors and to its own staff should they face difficulties meeting council tax payments.
