WEEKLY INDUSTRY RECAP: WEEK ENDING 3 feb 2013
A major social housing provider in the North East has had it with predatory payday loan providers running roughshod over local low income earners.
There are many properties managed in Tees Valley by Coast and Country, and that means plenty of tenants that may have been running into trouble with payday advance lenders luring them into unsustainable debt with bait-and-switch tactics and selling loans to those in need without providing enough transparency to prospective borrowers regarding the costs of repayment. As a result, Coast and Country has launched a massive anti-payday lending campaign, hoping to be heard amongst the tumultuous sea of voices that are made up of high-profile payday lenders and their slick advertising campaigns.
Coast and Country will be focussing its message on ways to avoid having to rely on high interest rate short term loans from a payday lender by sending teams of financial experts out and about to towns in the North East with high levels of payday loan borrowing, complete with vans emblazoned with adverts on the side to discourage people from relying on high-cost credit to solve their financial problems. Coast and Country’s chief executive, Iain Sim, remarked that there are already too many households struggling to meet ends thanks to the constantly rising cost of living, and what with January and February being quite difficult on household finances due to fallout from festive break spending it’s even more important to warn off those susceptible to the wiles of payday lenders now rather than after it’s too late and the bill collectors are calling nonstop.
The interest rates on payday loans are astronomically high, warned Mr Sim, as he cautioned against the dangers of falling prey to a loan that carries annualised interest in excess of 4,000 per cent. Doing so can lead to an unending spiral of payday lending as you borrow from Peter to pay Paul, all the while racking up unsustainable debt that can cripple your ability to pay your bills and could even see you losing everything in the end!