City council bans payday loan ads from billboards and bus shelters

A city council is claiming to be the first local authority in the country to ban payday loan websites from advertising on billboards and bus shelters.

Plymouth City Council has also announced that it will block access from its computer network to the 50 most popular payday loan websites. The block will cover libraries and community centres.

Cllr Chris Penberthy, Cabinet member for Co-operatives and Community Development, said: "Plymouth's advice agencies are taking calls daily from people who are running up huge debts that are causing stress and hardship to them and their families. We need to protect people and make it difficult for payday loan companies to operate in our city but we do recognise times are hard.

"We are working with our partners to make credit union services more easily available in the city centre, this is an affordable lending option for people that won't trap them with massive interest rates."

The council said it estimated that 5,000 people in the city have payday loans.

Steve Meakin, Money Advice Co-ordinator for Devon and Cornwall and the Chair of the Institute of Money Advisers, said: "It's difficult to overestimate the harm payday loans are causing to Plymouth residents. Plymouth City Council's initiative is really welcome and represents a constructive first step in combating the unacceptable face of the financial services industry."