We are developing a campaign with partners in both the public and private sectors to make Leeds a payday loan free city. The campaign will take place across the city to address payday loans and high cost lending.
Rise in high cost lending.
There has been a recent boom in Payday and other high cost lenders leaving Leeds’ most vulnerable people drowning in debt. Some lenders have charged people interest rates of more than 5,000%.
A number of the lenders have almost become household names. Some of them enjoy a high profile thanks to TV advertising and sponsorship deals. Marketing of well-known brands has convinced many people to think of payday loans as normal, and an easy way out of their problems. However, loans of this type can lead to unsustainable debts.
In Leeds, we are concerned that the current economic situation, and the problems some families are facing because of the Government's welfare changes, may push more people into the high cost lending market.
Our campaign has cross party support. We are urging people in Leeds to avoid the temptation to take out loans with payday lenders. We want to remind people that there are alternatives. These include local Credit Unions who can offer help to the most affected.
We want to make people aware of the impartial and free money and debt advice available in the city, and encourage them to use these services.