Loan firms blocked from council’s computers

The decision by City of York Council means the firms, which offer loans to people at what critics say are exorbitant rates of interest, will not appear on its public computers in libraries and other council offices, as well as to its staff.

Their access is also blocked to the council’s wi-fi provision at its libraries and offices and in the city centre around St Helen’s Square and along Coney Street.

As an alternative, the council says it is promoting local credit unions which support savers and borrowers facing difficulties getting support from high street banks.

Cabinet member Councillor Linsay Cunningham-Cross, who has responsibility for Crime And Stronger Communities, said: “As part of our commitment to build stronger communities and to fight poverty, we want to signpost residents towards more reputable sources of financial support. The risks associated with escalating debt due to spiralling interest rates are too high.”

Coun Dafydd Williams, cabinet member for finance, performance and customer service, said: “As welfare reforms bite, people on the lowest incomes in York may be driven to payday lenders to pay their bills.

“Affordable forms of finance are not always easy for people with poor credit histories to access, so solutions such as the South Yorkshire Credit Union could make all the difference.”

MPs last week blamed ineffective regulators for failing to get to grips with what they described as “predatory” lenders.

In March, the Office of Fair Trading gave 50 payday lenders just 12 weeks to improve their behaviour or risk losing their licences to trade.

Formal investigations have already been opened by the watchdog into the business practices of three un-named payday lenders. Three firms have also had their licences revoked and two have surrendered their licences since the review of the sector started.