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Payday Loan Shops Increase

Written By On 14/03/2014

Research was conducted to investigate which areas of the UK are the most populated with payday lending outlets in proportion to habitants within those areas.

The seven largest short term loan lending firms have a total of 1,437 payday loan shops trading throughout the high streets of Britain that the Bureau of Investigative Journalism based their data on.

It is now estimated that there is a ratio of one payday loan store to seven banks or building societies situated on our high streets.

Lewisham in the South East of London was the highest on the list with almost eight payday loan stores per 100,000 residents. Then came Harlow in Essex in second place.

The Merseyside borough of Halton set in the North West of England was positioned third as their area amounted to close on ten payday outlets to 100,000 people.

Cash Generator and The Money Shop are two of the more well known named lenders that have been expanding across the country amongst others that have been springing up recently.

The Bureau gathered data from 326 local authorities within the UK. Their figures intimate that a link exists between the prosperity of a neighbourhood and the widespread presence of the lending sector on their streets.

There may well be some truth in that as Liverpool was positioned twelfth in the investigation and is coincidently considered as the fifth most deprived borough in Britain.

Halton, which is just a stone’s throw from there is number thirty two on the list of the most deprived boroughs, whilst Lewisham is ranked at sixteenth.

Halton MP Derek Twigg feels that their whole area has a problem with lenders and would like to see something done.

Mr Twigg said:

I would welcome, for instance, a cap and levy on the highest interest rates. Some find these loans useful, but many people get into trouble due to the extortionate costs attached.

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