A call has been made for Erewash Borough Council to ban payday lenders from advertising on council property, including bus shelters.
A request was due to be made by Labour councillors at the authority’s full meeting tonight (Thursday January 23).
The council will be urged to discourage the promotion of payday loan companies through council resources, and wherever possible promote the outstanding work of the Erewash Credit Union.
Research from media regulator Ofcom found that the number of adverts for payday loans nationally had risen to around 397,000 ads in 2012, up 11,000 in 2009.
Leading the charge is Labour deputy leader, Cllr James Dawson, who said: “Councils should be trying to promote the excellent work of their credit unions wherever possible, to ensure that residents are not driven into the arms of payday loan companies which ultimately could lead them getting into further and further in debt.”
The views of Cllr Dawson were echoed by Labour leader, Cllr Alex Phillips.
He said: “Over the past few years there has been a huge increase in the advertisement of payday loans.
“Some charge an eye-watering 2,000% interest, causing an array of problems when people realise they can’t afford to repay the loan and interest back.
“As a council we have a moral duty to protect people and direct them to the excellent work of Erewash Credit Union, before they get into a spiral of debt.”