Caution urged over 'Pay Day Loans'
Published: 31 January, 2012
West Tyrone Sinn Féin Councillor Glenn Campbell has urged people to read small print before considering a pay day loan.
Local Sinn Féin councillor Glenn Campbell has urged the public to be cautious of money lenders offering 'Pay Day Loans'. Councillor Campbell has said there had been a marked increase in this type of service in the locality which has resulted in constituents being charged large amounts of interest when it comes to paying back the loan. Speaking on the issue councillor Campbell said:
"I would urge members of the public to be cautious about using these organisations. I have spoken to a number of constituents who have used such companies and some are paying back extortionate amounts of interest on the money sought from the lenders. On many occasions this leaves the person worse off than before they sought the loan.
"I think there also needs to be more regulation on these groups which offer these services. They are simply taking advantage of the harsh economic situation. Having looked at some of these companies I was astonished to find that interest rates stand at over 200% for a number of these companies. This is a terrible indictment and it is nothing short of loan sharking.
"I will be bringing my concerns to the Financial Services Authority to highlight the situation. The issue is particularly acute in the aftermath of Christmas, which traditionally has a marked increase in people seeking advice on debt and other money related issues.
"I would advice members of the public to be cautious with these organisations and if you are thinking about using them do so as a ultimate last resort. Furthermore they should read the small print and make sure they are aware of the consequences should they default. CRÍOCH