AN advice service boss has hit out at celebrities who promote payday loans.
The Hartlepool Citizens’ Advice Bureau (CAB) is supporting a call that has been made by the national Citizens’ Advice chief executive, Gillian Guy, for celebrities to stop appearing in TV adverts for payday loan companies.
Payday loans have come under fire after the Office of Fair Trading uncovered “deep-rooted” problems in the payday loan market.
It is concerned that lenders are mainly competing on the availability and speed of loan approval as opposed to how much it will cost the borrower.
The trading watchdog says loans are becoming far more expensive than struggling borrowers had expected.
Payday lenders are now facing a full investigation by the Competition Commission.
Some of the celebrities that have been involved in advertising and promoting payday loan companies include David Dickinson, Carol Vorderman, Kerry Katona, Nicholas Parsons.
Joe Michna, manager of Hartlepool CAB, based in the town’s Park Road, said: “By promoting these companies the celebrities are giving them legitimacy and many people who are unaware of the very high interest rates charged by these companies will be seduced into taking out loans with them which they make come to regret.
“The payday loan industry is under intense scrutiny now and it needs to get it’s house in order and act like other responsible lenders.”