Northampton, Northumbria and Swansea universities ban payday loan adverts

 

Three universities have banned adverts from high-cost payday lenders after fresh fears were raised that unscrupulous firms are targeting hard-up students.

Northampton, Northumbria and Swansea have committed to never allowing payday lenders to advertise on their campuses and the National Union of Students is today launching a campaign to encourage more universities to join them.

“It’s clear that some payday lenders are targeting vulnerable students and the Government has so far failed to act so it’s important we do everything we can to limit their ability to reach our campuses,” said Pete Mercer, NUS national vice-president (welfare).

“Students are struggling to make ends meet and this is having a real impact on their well-being and their education.”

Payday lenders are currently under investigation by the Office of Fair Trading, which has proposed referring the sector to the Competition Commission, amid accusations of irresponsible lending and encouraging vulnerable people to take on expensive debt they’ll never be able to repay.

With interest rates quoted at more than 4,000 per cent APR, lenders have been accused of rolling over loans pushing people into a deadly spiral of debt.

MPs got into a row with the OFT last month by accusing the regulator of failing to control rogue payday lenders.

The Public Accounts Committee accused the watchdog of being “ineffective” and “timid”, and said it failed to identify risks of malpractice which have cost consumers at least £450m a year.

But the OFT hit back by pointing out that its powers to shut down rogue firms are limited. However its current probe into the sector has seen three of the country’s 50 largest lenders close for business and the OFT has written to the others to demand that they clean up their acts or face closure.

Research by the NUS has found that up to one in 10 students in vulnerable groups had resorted to using high-cost credit.

“Three times as many students with caring responsibilities use payday loans as other students,” said Mr Mercer.

The university bans follow last week’s U-turn by Bolton Wanderers which bowed to fan power by scrapping plans to feature payday lender Quick Quid as its shirt sponsor next season.

The move followed the lead of Sheffield Wednesday which refused to accept sponsorship from a payday lender, despite the firm offering 25 per cent more than usual to persuade the club to sign up.

Last week The Independent reported that unscrupulous lenders have been using religion to tempt borrowers with two firms claiming false links to religious institutions.

Paul Crayston, from the debt charity National Debtline, said using religion to prey on the vulnerable is “completely unacceptable”.

“If anyone is unsure that a lender they are considering borrowing from or have borrowed from is legitimate, they should seek free, impartial advice as soon as possible,” he advised.

Arts & Entertainment
Shaun Evans as Endeavour interviews a prisoner as he tries to get to the bottom of a police cover up
tvReview: Second series comes to close with startling tale of police corruption and child abuse
Arts & Entertainment
A stranger calls: Martin Freeman in ‘Fargo’
Review: New 10-part series brims with characters and stories

Arts & Entertainment
Schwarzenegger winning Mr. Universe 1969
arts + entsCan you guess the celebrity from these British Pathe News clips?
Sport
Raheem Sterling and Luis Suarez celebrate during Liverpool's game with Norwich
football Another hurdle is out of the way for Brendan Rodgers' side
VIDEO
Have you tried new the Independent Digital Edition iPad app?
Arts & Entertainment
The star of the sitcom ‘Miranda’ is hugely popular with mainstream audiences
TVMiranda Hart lined up for ‘Generation Game’ revival
News
Portrait of Queen Elizabeth-II by David Bailey which has been released to mark her 88th birthday
peoplePortrait released to mark monarch's 88th birthday
Life & Style
The writer, Gerda Saunders, with her mother, who also suffered with dementia before her death
healthGerda Saunders on the most formidable effect of her dementia
Sport
Manchester United manager David Moyes looks on during his side's defeat to Everton
footballBaines and Mirallas score against United as Everton keep alive hopes of a top-four finish
Sport
Tour de France 2014Sir Rodney Walker on organising the UK stages of this year’s race
Arts & Entertainment
Jessica Brown Findlay as Mary Yellan in ‘Jamaica Inn’
TVJessica Brown Findlay on playing the spirited heroine of Jamaica Inn
News
YouTube clocks up more than a billion users a month
mediaEuropean rival Dailymotion certainly thinks so
Arts & Entertainment
The original design with Charles' face clearly visible, which is on display around the capital
arts + ents The ad shows Prince Charles attired for his coronation in a crown and fur mantle with his mouth covered by a criss-cross of white duct tape
Arts & Entertainment
‘Self-Portrait Worshipping Christ’ (c943-57) by St Dunstan
books How British artists perfected the art of the self-portrait
Sport
Luis Suarez celebrates after scoring in Liverpool's 3-2 win over Norwich
Football Vine shows Suarez writhing in pain before launching counter attack
News
People White House officials refuse to make comment on 275,000 signatures that want Justin Bieber's US visa revoked
News
Sir Cliff Richard is to release his hundredth album at age 72
PEOPLE
Sport
Lukas Podolski celebrates one of his two goals in Arsenal's win over Hull
football
Arts & Entertainment
Quentin Tarantino, director
film
News
The speeding train nearly hit this US politican during a lecture on rail safety
news As the saying goes, you have to practice what you preach
Sport
Mercedes Formula One driver Lewis Hamilton of Britain (front) drives ahead of Red Bull Formula One driver Daniel Ricciardo of Australia during the Chinese F1 Grand Prix at the Shanghai International circuit
sport
Arts & Entertainment
Billie Jean King, who won the women’s Wimbledon title in 1967, when the first colour pictures were broadcast
tv
News
Snow has no plans to step back or reduce his workload
mediaIt's 25 years since Jon Snow first presented Channel 4 News, and his drive shows no sign of diminishing
Life & Style
food + drinkWhat’s not to like?
Have you tried new the Independent Digital Edition iPad app?
iJobs Job Widget
iJobs Student

C# .NET Developer (SQL, Algorithms, Data Algorithms, Artificial

£40000 - £50000 per annum + Benefits + Bonus: Harrington Starr: C# .NET Develo...

Cover Supervisors needed in Wrexham

£50 - £70 per day: Randstad Education Leicester: Job Opportunities for Cover S...

Cover Supervisors needed in Flintshire

£50 - £70 per day: Randstad Education Leicester: Job Opportunities for Cover S...

MATHEMATICS TEACHER- CITY OF LONDON- APRIL 14

£135 - £160 per day: AER Teachers: An excellent opportunity has arisen for a M...

Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Day In a Page

How I brokered a peace deal with Robert Mugabe: Roy Agyemang reveals the delicate diplomacy needed to get Zimbabwe’s President to sit down with the BBC

How I brokered a peace deal with Robert Mugabe

Roy Agyemang reveals the delicate diplomacy needed to get Zimbabwe’s President to sit down with the BBC
Video of British Muslims dancing to Pharrell Williams's hit Happy attacked as 'sinful'

British Muslims's Happy video attacked as 'sinful'

The four-minute clip by Honesty Policy has had more than 300,000 hits on YouTube
Church of England-raised Michael Williams describes the unexpected joys in learning about his family's Jewish faith

Michael Williams: Do as I do, not as I pray

Church of England-raised Williams describes the unexpected joys in learning about his family's Jewish faith
A History of the First World War in 100 moments: A visit to the Front Line by the Prime Minister's wife

A History of the First World War in 100 moments

A visit to the Front Line by the Prime Minister's wife
Comedian Jenny Collier: 'Sexism I experienced on stand-up circuit should be extinct'

Jenny Collier: 'Sexism on stand-up circuit should be extinct'

The comedian's appearance at a show on the eve of International Women's Day was cancelled because they had "too many women" on the bill
Cannes Film Festival: Ken Loach and Mike Leigh to fight it out for the Palme d'Or

Cannes Film Festival

Ken Loach and Mike Leigh to fight it out for the Palme d'Or
The concept album makes surprise top ten return with neolithic opus from Jethro Tull's Ian Anderson

The concept album makes surprise top ten return

Neolithic opus from Jethro Tull's Ian Anderson is unexpected success
Lichen is the surprise new ingredient on fine-dining menus, thanks to our love of Scandinavian and Indian cuisines

Lichen is surprise new ingredient on fine-dining menus

Emily Jupp discovers how it can give a unique, smoky flavour to our cooking
10 best baking books

10 best baking books

Planning a spot of baking this bank holiday weekend? From old favourites to new releases, here’s ten cookbooks for you
Jury still out on Manchester City boss Manuel Pellegrini

Jury still out on Pellegrini

Draw with Sunderland raises questions over Manchester City manager's ability to motivate and unify his players
Ben Stokes: 'Punching lockers isn't way forward'

Ben Stokes: 'Punching lockers isn't way forward'

The all-rounder has been hailed as future star after Ashes debut but incident in Caribbean added to doubts about discipline. Jon Culley meets a man looking to control his emotions
Mark Johnston: First £1 million jackpot spurs him on

Mark Johnston: First £1 million jackpot spurs him on

The most prize money ever at an All-Weather race day is up for grabs at Lingfield on Friday, and the record-breaking trainer tells Jon Freeman how times have changed
Ricky Gervais: 'People are waiting for me to fail. If you think it's awful, then just don't watch it'

Ricky Gervais: 'People are waiting for me to fail'

As the second series of his divisive sitcom 'Derek' hits screens, the comedian tells James Rampton why he'll never bow to the critics who habitually circle his work
Mad Men series 7, TV review: The suits are still sharp, but Don Draper has lost his edge

Mad Men returns for a final fling

The suits are still sharp, but Don Draper has lost his edge
Google finds a lift into space will never get off the ground as there is no material strong enough for a cable from Earth into orbit

Google finds a lift into space will never get off the ground

Technology giant’s scientists say there is no material strong enough for a cable from Earth into orbit