Church Welcomes ‘Sea Change’ in Attitudes Towards Payday Lending
February 10, 2016
Attitudes among British consumers towards payday lenders and their services have undergone a “sea change” in recent years, according to a new report from the Church of England.
The church has been among the most outspoken critics of payday lenders and has welcomed trends that point towards a growing shift away from their use around the UK.
In fact, the church has suggested that its high-profile condemnation of payday lenders has helped to persuade many people around the country not to use them and to find alternative ways of borrowing money or managing their finances.
In 2013, the Archbishop of Canterbury, the Church of England’s leader, spoke out against payday lending and said the church would be aiming to send lenders like Wonga out of business by supporting community-based finance initiatives.
Not long after the archbishop’s pronouncements it emerged that the Church of England had indirectly invested in Wonga but it was announced in 2014 that all ties between the two organisations had been cut.
Around this time the church created a taskforce to investigate trends in short-term lending and to look into how it might help to reduce reliance on payday lending and support the development of a “larger and stronger community finance sector”.
The taskforce found that there has been a 13 per cent increase in membership of credit unions since July 2013 and a 68 per cent decline in payday lending activity since the industry’s peak at the same time.
“Tighter regulation of payday lenders, including a cap on the cost of credit and controls on the number of rollovers has tackled some of the worst excesses of the industry,” the Church of England Task Group said in its report on the subject.
Reflecting on the church’s role in the reduction in use of payday lenders in recent years, its taskforce’s report said: “The Archbishop of Canterbury’s intervention has undoubtedly helped to galvanise broader awareness of, and support for, credit unions from churches and wider society and contributed to a sea change in public and political opinion about payday lending.”
If you are struggling to manage your debts in relation payday loans or any other form of borrowing then Scotland Debt Solutions can help. Call us directly to arrange a free consultation.
When taking out a joint loan, there are many things you need to consider. Signing up to a joint credit agreement is a huge commitment and it’s important to ensure you have all the facts before signing on the dotted line. While no one wants to think about a relationship breaking down, the truth is […]
If you’re looking to save some money it’s a good idea to make a detailed budget that lets you see where your cash is currently being spent, and offers an overall view of your finances. You’ll need to collect together your income and expenditure details, including annual costs such as insurance, car expenses, birthdays and […]
A trust deed is a common debt repayment programme based around a voluntary arrangement made between you, your creditors and a qualified independent trustee who takes control of your debt repayments for a typical period of four years. If you’re having difficulty paying your debts and have assets or a regular income, you may qualify […]
If you have built up debt from gambling, you may be able to write off part or all of the debt via a formal Scottish insolvency route. Not all insolvency solutions allow debts to be written off, but you may be eligible for a trust deed if you meet certain criteria, with sequestration also being a possibility […]
Her Majesty’s Revenues and Customs (HMRC) is one of the biggest creditors in Scotland, and indeed across the rest of the UK. Millions of people make payments to the government through HMRC in the form of income taxes, National Insurance and VAT every year. For the majority of people in employment, this is done automatically […]
Council tax is a charge levied on residential property and payable to the local council. While some properties are exempt from paying council tax, most households must factor this bill into their monthly budget. Households will be given a yearly charge which can then be broken down into a series of monthly instalments throughout the […]