Payday loan websites
What are payday loans?
Sometimes known as ‘payday advance’, payday loans are a small cash loan (usually under £500) taken out over a short time period (often 2 – 3 weeks).
Payday loans come with extra fees and interest payments that are very high- well above those of credit unions and even mainstream banks and building societies.
Why are payday loans causing concern?
- High interest rates on payday loans mean that, even when you borrow a small amount, repayment costs can be very high
- When repayments are not made on time, costs can spiral
A report by the Office of Fair Trading (OFT), published in March 2013, found ‘evidence of widespread non-compliance of the Consumer Credit Act and other legislation’ by payday loan companies. Find out more in the Payday Lending Compliance Review report - OFT website.
What is the council doing to address these concerns?
Because of these growing concerns, the council, as well as our partners Culture Warrington (including libraries) and Livewire Warrington, has made the decision to block access to payday loan websites for both residents and staff using council computers.
What are the alternatives to payday loans?
We strongly encourage residents and staff to stay away from payday loan companies. Instead of getting a payday loan, you could:
- access your local credit union
- search for low interest loans through mainstream banks and building societies.
If you already have a loan and would like some advice there are links to useful agencies on our debt advice webpages.
What should I do if I come across a payday loan site that hasn’t been blocked?
When using our computers, if you come across a payday loan website you think should be blocked but isn’t, please report it to Contact Warrington.
What should I do if I come across a blocked site that I don’t think should be blocked?
If you think we have blocked a site that we shouldn’t have, please report it to Contact Warrington.