Payday loan bans

Meeting: 
MQT on 2013-10-23
Session date: 
October 23, 2013
Reference: 
2013/3855
Question By: 
Navin Shah
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

A ban on payday lenders advertising in public spaces in Leeds is to be examined by the City Council. Birmingham City Council is thought to be considering similar plans. It has also teamed up with 8 other local authorities such as Liverpool, Newcastle, Sheffield, Leeds, Tower Hamlets and Islington, to draw up proposals for a bylaw to stem companies which charge annual interest rates of up to 5,000% on short-term loans.

1)    When will the Mayor stop accepting pay day loan adverts on GLA property and businesses such as TFL buses?

2)    Do you have a strategy to work with Borough Councils in London towards introducing initiatives against proliferation of Payday Loan companies locally and provide support and advice to those who have succumbed to the horrific short-term loans?

Answer

Answer for Payday loan bans

Answer for Payday loan bans

Answered By: 
The Mayor

Please see my response to MQ 1959 / 2012 at: http://mqt.london.gov.uk/mqt/public/question.do?id=41715.

1.    As this response makes clear, only legitimate, regulated credit providers are entitled to purchase advertising for their products on public transport from TfL's advertising contractors.

2.    This is a matter for local authorities. I continue to promote credit unions and free debt advice services in the capital. My advice to Londoners is that they should always be careful when borrowing money and to be particularly cautious of punitive interest rates.