Mumsnet bans adverts from payday lenders
Simon Read is Personal Finance Editor at The Independent. He edits the Saturday Your Money section and writes the Daily Money column and Wednesday’s Midweek Money section in i newspaper. He also writes for the news and business pages of the Independent and i newspaper and is a regular money commentator on TV station London Live. He has won numerous awards including Consumer Finance Journalist of the Year.
Personal Finance Editor
Monday 26 November 2012
Mumsnet last night became the first major website to publicly ban payday lenders.
Co-founder Justine Roberts said the move was in recognition that the high-cost credit companies can cause misery for families.
“There are clear problems with this industry, and until it is cleaned up, we don't want anything to do with it,” she said.
Mumsnet has become a powerful voice for Britain’s parents, with 200 local sites, as well as a network of around 2,000 bloggers.
The move was welcomed by MP Stella Creasy who has been campaigning to crack down on what she terms "legal loan sharks".
Her campaign has led to a crucial House of Lords vote tomorrow (Wednesday) calling for a cap on the charges made by payday lenders. Some of which charge more than 4,000 per cent APR.
“Mumsnet's stance will be very welcome to many of those struggling with payday loan debts this Christmas and I hope they are not the last organisation to take a stand on the need to sort out this industry,” Ms Creasey said.
“Every week now we see evidence that legal loan sharks are out of control and causing problems for millions of families in Britain who are now getting into debt by using this toxic type of credit.
“There is no excuse for the Government not to act to protect British consumers, but despite evidence from other countries of what works they still refuse to do anything to help.”
Last week the Office of Fair Trading warned payday lenders that they would be shut down if they didn’t curb some of their unscrupulous business practices, such as snatching money from vulnerable people's bank accounts leaving them no cash to pay for essentials.
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