UWE’s Students’ Union aims to take a “strong stance” against payday lenders, following a motion that was made in the SU’s annual general meeting.
“We want to make sure we tell payday loan companies to stop targeting students” says SU President Charlie Roper and Community and Welfare Officer William Anderson.
“Students get into enough debt already and the advertising payday loan companies use doesn’t emphasize the extremely high interest rates of these loans.”
Government initiated website The Money Advice Service explains how “payday loans are an expensive way to borrow.”
They advise to ‘never take out a payday loan unless you’re 100% certain you can repay it on time and in full.”
Roper and Anderson claim that “students sometimes drop out because of money issues and we want to work with the university to make sure we can minimize this.”
“We have both seen first hand the impact that these companies can have on friends.”
According CFA, Consumer Finance Association, “the UK’s consumer credit market is one of the largest in Europe. Payday lending has grown rapidly in the UK.”
Although, it claims that “92% of customers believe that payday loan companies provide a very useful service and 91% of our customers were satisfied with their overall experience.”
Roper and Anderson warn students contemplating taking out payday loans to “think very carefully about it and look at the other, safer help available. The adverts don’t focus on the extremely high levels of interest you will have to pay back.”
By Matthew James Bryan