Citizens Advice is still battling to stop irresponsible payday lenders causing misery for thousands of people already struggling with debt – and The Lincolnite readers can play their part.
In November, Chancellor George Osborne announced a cap on the total amount a loan should cost, but it was a small victory in the war against high interest lending. Advisors at Lincoln CAB have seen the devastation that payday loans can cause as people spiral into debt and the bureau has provided evidence for the national campaign to ensure the industry is regulated so customers are treated fairly.
In 2012, payday lenders promised to clean up their act and CAB started to survey payday borrowers to monitor the pledge. After 12 months and 4,000 responses later, the survey revealed that promise of self-regulation was meaningless to many of the 100 lenders our research covered.
We found that three out of four people who take out payday loans got into trouble, which is not surprising as 61% of lenders did not properly check if the customer could afford repayments, and 84% broke their promise of freezing interest and charges when a borrower said they were struggling.
CAB’s work helped inform the Financial Conduct Authority’s (FCA) new plans for governing the consumer credit market, including payday loans, from April 2014. Their publication preceded the Chancellor of the Exchequer’s cap announcement and we are waiting for the FCA’s decision, but CAB believes the authority will come under intense pressure from the industry to relax their rules.
The plans include tighter affordability checks, limits on loan rollovers, limiting the use of Continuous Payment Authorities, signposting to free debt advice. While CAB continues to campaign against irresponsible lending practices and for viable alternatives, Lincoln residents can help us tackle payday advertising that targets vulnerable or young people.
We’ve all seen the adverts on TV or our computers, but these have to meet Advertising Standards Authority regulations and if the advert is found to be irresponsible or misleading it can be banned. For example, an advert that suggests fun things young people can do with a payday loan, such as blow it on a night out with their friends, would be irresponsible. An ad that suggested that a payday loan was better than any other form of lending would be misleading.
Since Cab launched its Bad Ad action, the ASA has been pretty busy — it recently banned Wonga’s radio ad that appropriated the 1950s song Mr Sandman with the new lines “Mr Wonga lend me some dough. Make it the simplest loan that I’ll ever know. Give me two choices when I go on-line. One for how much I want. Two for what length of time.” ASA found the ad irresponsible because it gave the impression that the process of taking a high interest loan was one that could be taken lightly.
Similarly, a Pounds to Pocket radio ad featuring an alien applying for credit was also banned because the ASA said it was socially irresponsible — the alien removed the process of taking on debt from reality.
CAB believes if it can stop this kind of advertising, we may be able to stop some people getting into debt in the first place.
If you see an irresponsible or misleading advert, complain to the ASA you can fill in our form on the Citizens Advice website and we can forward your complaint, or share it on Twitter using #paydaywatch.
Amanda McSorley joined the Research and Campaigns Team at Lincoln and District Citizens Advice Bureau in February 2013. She is a former journalist and newspaper editor, with 30 years’ experience of covering the issues that impact people’s lives.
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We are appealing for witnesses and dashcam footage after a collision caused serious injuries to a 23-year-old man.
Just before 3.30pm yesterday (2 July), we received reports of a collision on Barholm Road in Tallington. It involved a grey BMW 335D estate, a blue BMW 116D and an orange KTM motorcycle.
The motorcycle rider, a 23-year-old man, sustained serious injuries during the collision and was taken to hospital.
If you witnessed the incident and are yet to get in touch with us, please do so. If you have any other information or dashcam footage available that may have captured the road along the A1175 at the time of the collision, get in touch.
By calling 101 quoting incident 282 of 2 July.
By emailing [email protected] quoting incident 282 of 2 July in the subject line.
If you wish to remain anonymous, you can report via the independent charity CrimeStoppers on 0800 555 111 or online.
The 2022 Destination Lincolnshire Tourism Excellence Awards are open for applications, and Destination Lincolnshire giving you the rare chance to co-create your application with Nell Barrington, a tourism awards veteran, who has helped hundreds of businesses write winning applications over the last 15 years – including national VisitEngland winners.
The Tourism Awards Masterclass is taking place on Tuesday 12 July at 11am for one-hour online. Laura Freer, Head of Marketing at Destination Lincolnshire said: “This is a golden opportunity, after years of hard work and heartache, to get your business and team recognised and rewarded.
“A well written application is key to achieving a coveted place on this year’s shortlist, and I’d encourage all tourism and visitor economy businesses who are thinking of entering – whether they are seasoned at writing award applications or not – to join us for this exclusive masterclass.
“Nell Barrington has worked with us and VisitEngland on the founding application processes of these awards, and she is perfectly placed to assist in co-creating applications that you can be proud of. This is a great opportunity for business development too – whether you are shortlisted for an award or not – discovering how to effectively apply for awards and talk up your business adds another string to your bow.
“Booking is essential and places are limited to just 35 – so be quick! This year we’ve made our masterclass available to partners and also to those who we are yet to work with for free. Call it an added bonus, after two years away from the awards circuit.
The awards masterclass is focussed on the application process, and it will spell out what the judges are looking for. You’ll learn how to make your application stand out from the local competition, helping your chances of going through to the national VisitEngland Awards in 2023.”
There are fifteen categories open for nominations from visitors attraction, accommodation providers, hospitality businesses and many more.
The deadline for nominations is July 29, with online judging starting on July 30 and mystery shopping from August 13. Finalists will be announced on Monday, August 15.
The awards ceremony will be held at the Engine Shed on October 21, and will be hosted by Lincs FM presenter, John Marshall.
The event is organised by Stonebow Media, publishers of The Lincolnite, to celebrate the best businesses in Greater Lincolnshire, alongside headline sponsors Lincoln College and Destination Lincolnshire.
We would also like to thank our other sponsors Visit Lincolnshire, Heart of Lincs, Duncan and Toplis and LNER, insight6 and EV Camel.