Payday lenders have been frozen out by the Borough. Access to their websites has been blocked on all council computers.

Access to over 170 sites – such as Wonga.com and 247cashline.com – have been barred from all Council PCs, including those in public spaces like libraries. The move aims to help protect local people from the quick cash companies and avoid sky high interest rates.

Richard welcomed the move, calling again for new controls on payday loan companies.

He pointed out that figures released as part of Sutton Council’s “Economy Watch – Economic Indicators” report show an alarming rise in debt enquiries from Sutton residents to the Citizens Advice Bureau. Richard said, in a letter to residents, “I am increasingly concerned that people are turning to these companies without looking into the real costs of borrowing money, which in some cases that I have investigated are well over 1000% APR.”

Speaking to the Council’s Housing, Economy and Business Committee about the latest data on Sutton’s economic performance, on 18 June, Richard pointed out that enquiries to Sutton’s Citizens Advice Bureau were up by about 5% in the last quarter with debt enquiries increasing by 8.8%. There has to be a fear that recent welfare cuts will make the position worse.  

In a letter to residents he called for consideration to be given to establishing by law some upper limit on the interest rate that can be charged on loans. 

The Leader of Sutton Council, Councillor Ruth Dombey, said: “Payday lenders prey on people who are at their most vulnerable and in need of quick financial assistance. Sometimes people don’t realise the trouble taking out one of these irresponsible loans can do for them in the long run. A small initial loan can lead to thousands of pounds of debt and an irreversible downward spiral.

“This is a small yet significant step towards protecting local people from these companies. I’d urge anyone who needs advice to speak to their bank or the local credit union.”

People who live, work or study in Croydon, Merton or Sutton can start saving at the CMS Credit Union. Credit unions are savings and loans co-operative businesses that are committed to promoting saving rather than borrowing. Anyone who saves with a credit union becomes a member. The members’ savings are pooled to form a sum of money from which members can borrow at those times when they need to.

For more information about CMS Credit Union click on this link.