The emergence of payday lenders on Doncaster’s high street is a ‘frightening’ trend, putting the town’s most vulnerable residents at risk, councillors have warned.
A number of Doncaster residents have been forced to take out multiple payday loans in order to pay off others, Mayor of Doncaster Ros Jones said at yesterday’s full council meeting.
Members agreed urgent action needed to be taken against irresponsible lenders and people should instead be encouraged to use safer methods of borrowing such as credit unions.
Balby Coun Sue Wilkinson, a Labour councillor, raised concerns and said: “The expansion of payday lenders on the high street is a worrying trend in Doncaster and therefore regulation is required.
“Will the mayor seek to promote credit unions as a more affordable way of saving and borrowing money?”
Mayor Ros Jones replied: “I absolutely agree with you. I find payday lenders immoral. They’re hitting the most financially vulnerable in our society and I believe really strong regulations need to be brought in.
“What we need is to ensure our most vulnerable are protected. We will work hand in glove in order to bring about the best types of saving. We want to see our residents improve their lives.
“I have had personal experience of listening to people who have taken out a loan to pay off a payday loan. To listen to the amount of debt they have got into for borrowing a relatively small amount of money is just frightening.
“They’re borrowing off one to pay off another and this is wrong.”