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Wirral Council bans payday loan sites on computers

Wirral Council is blocking access to payday loan websites on all its public computers.

From this week, all computers in Wirral libraries and other coiuncil buildings will not permit access to sites offering short-term unsecured loans at extreme rates of interest.

The move follows high-profile criticisms of payday loan firms. Last week, the Archbishop of Canterbury, Justin Welby, vowed to put payday lenders out of business by using church resources to support credit unions as an alternative source of short-term funding.

By blocking the sites on its computers, Wirral Council is taking a clear stand. Critics believe payday loans can result in customers becoming trapped in spiralling debt with no means to pay it off. At present, there are no limits to the interest charges payday lenders can impose.

Similar action has been taken by the neighbouring Cheshire East and Cheshire West and Chester councils.

Wirral councillor Chris Meaden, cabinet member for health and wellbeing, said: “This action will prevent literally hundreds of sites which offer dangerous, unsecured loans from being accessed from our computer network.

“We are one of the first councils to take action to restrict access to these sites, which prey on people who are desperate and seeking help. This is only the first step in tackling this problem.”

The Office of Fair Trading has published a highly-critical report into payday loans, stating that operators often fail to establish whether people can afford the loans and some use aggressive tactics when collecting the debts. .

This was posted in Bdaily's Members' News section by Simon Malia .