Payday Bank’s ‘Jubilee loan’ slated by debt campaigners
Payday Bank’s blog article suggesting that a payday loan would be good way of funding Jubilee parties, has been called ‘irresponsible’ by debt charities.
The article, which was written by a contracted third party, said: “If you want to boost your Jubilee spending pot, a same day loan could provide the cash you need.”
It was removed from Payday Bank’s blog after the BBC contacted the lender, bringing it to their attention.
Payday Bank admitted that it should have been ‘more rigorous’ in monitoring the information published on the blog.
A spokesman told the BBC “We do not feel this was acceptable content and is not up to the standards we set ourselves with regards to responsible lending and brokering”.
A recent poll for MoneySupermarket.com found that Britons will spend £823m celebrating the Queen’s Diamond Jubilee.
The comparison site estimates that 40 per cent of people in the UK will celebrate the Jubilee, spending an average of £40 per person.
Jubliee-related purchases are expected to include party food and drinks, decorations such as bunting for street parties and souvenirs.
The estimated spending is nearly double the £480m which 34 per cent of Britons said they would spend on celebrations for the wedding of Prince William and Kate Middleton last year.
Earlier this month payday loan companies agreed to voluntary government guidelines over their business practices.
Under a new code of practice, to be introduced by 25 July, they will have to be more transparent about loan payments and carry out more rigorous checks to ensure borrowers are able to pay back the loan.
They are also required to assist customers experiencing difficulties by freezing charges and interest after they have reached a certain level and giving customers longer to make their repayments.