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Councils Gang Up Against Payday Loans

Written By On 12/09/2013

The city of Birmingham is the latest council attempting to halt payday lending firms from opening in their high streets. They are the nineteenth city council across Britain who disapprove of the short term loans industry as they simply see them as 'loan sharks'.

Some of the other councils who have boycotted payday loans include Haringey, Oldham, Newcastle, Leeds, Liverpool, Plymouth and Islington.

Their newest member is uniting with the other authorities in creating much harder restrictions against the loan companies in order to prevent them from having any presence in their borough. They are looking to bring in new bylaws that will be approved by Government.

Heading Birmingham's council is Sir Albert Bore and he says,

These companies prey on the most vulnerable and poorest in society and we have decided that we do not want them to gain any further foothold in our towns and cities.

Birmingham are one of a growing number of local councils who have banned any access to payday and short term loan sites via their library computers. They also do not allow any marketing in their public areas.

A summit meeting was held at Birmingham City's Council House for the authorities to look at ways of helping people who are struggling both financially and socially. Part of the agenda was to encourage Credit Unions to become more engaging.

They were also looking at housing and education for ways to help the most deprived.

Labour councillor Sir Albert strongly believes in credit unions. He was a founder member of the Birmingham Credit Union which was created over twenty years ago. He went on to say

I always say that if we borrow from a local credit union that money is spent locally, it is invested in the community.