WDH welcomes the news announced earlier this week by the Financial Conduct Authority (FCA) on the issue of payday lenders.
Ultimately, the decision to cap the amount these companies can charge their customers at 0.8 per cent – meaning nobody will have to pay back more than twice what they borrowed – is good news for those of our tenants who can get caught up owing money to these companies, who have exploited the vulnerable for too long. There are a host of other measures too which make it harder for such companies to operate.
But the news comes with a renewed warning.
Demand for short term loans remains and no tenant should think that this latest development is an invitation to borrow more money than they can afford. Taking on credit without having the means to pay it back is still a very dangerous, maybe even perilous, option.
Removing the need for payday loans is something we are striving for at WDH. Our Financial Inclusion team work tirelessly with tenants to improve their financial literacy, to educate them on budgeting and money management, and to keep them from falling into the clutches of payday lenders. We have recently launched a series of short animations, with help from our tenants. as part of our Big Lottery funded Cash Wise programme which aims to work with any social housing tenant in the Wakefield district to improve their financial capability. We also work closely with the Step Change Debt Charity to help those who are struggling the most.
Eradicating pay day lenders from our high streets all together is something we’re all striving for and the regulator’s announcement, coupled with our own projects and programmes, is a positive step towards that."
If you need support to create a budget and plan your finances better, visit the Cash Wise website
-- Pete Beaumont, Financial Inclusion Manager, WDH