The Children’s Society Calls for Watershed Ban on Payday Loans

A report from The Children’s Society has called for a restriction on payday loan adverts before 9pm, a sentiment which, according to their research, is reflected by three-quarters of parents.

Payday loan companies are getting some bad press; but they provide a service the mainstream lenders do not.
Payday loan companies are getting some bad press; but they provide a service the mainstream lenders do not.

The restrictions would be in a similar vein to those that cover gambling, alcohol, tobacco and junk food. The research conducted found that over a third of children considered the adverts to be fun, tempting or exciting, and were significantly more likely to say they would consider using a payday loan.

Ofcom research showed that over 4 years payday loan adverts on TV have increased 20 times over. More than half of all payday loan adverts are broadcast in the daytime schedule, and over half of 10 to 17 year olds see payday loan adverts “often” or “all the time”.

Additionally, over half of children were able to recognise at least three lenders, with a massive 93% knowing at least one of the eight top payday loan companies.

Matthew Reed, Chief Executive of The Children’s Society, said:

“It is crucial that children learn about borrowing and money from their school and family – not from irresponsible payday loan advertising. A significant majority of parents back a ban and it’s now time for the Government to act.”

If you are struggling to make your monthly payments, or have got into difficulty because of payday loans, speak to one of our advisers, to help you figure out the best course of action for your circumstances.