The University of East London has banned payday loan companies from marketing their services anywhere on campus, including in magazines, on posters or online.
This follows Dundee City Council’s move to block payday loan advertising on any of its websites.
Michael Ossei from uSwitch.com, said: “Students may not fit the criteria for a short term loan, but they are evidently managing to lay their hands on this quick and easy cash fix – and are finding themselves in long term difficulties as a result.
“Payday loans provide a fast fix of cash with limited credit checks and it is easy to see how this is proving too much of a temptation for many students, as well as other vulnerable young people. It’s clear that payday loan companies are taking advantage of this and are focusing their marketing activity on capturing a younger audience – whether through adverts on daytime TV or, more recently, direct text messaging.
“But, as their name suggests, these types of loans should only be used as a short term bridging loan to see you through until payday. It’s vital that anybody considering taking one out has a concrete and guaranteed means of paying it back within the specified timeframe. They should be an absolute last resort, and used with utmost caution.
“It’s our hope that the OFT continues to monitor this escalating practice that has the potential to ruin so many young lives – and provide the necessary legislation to bring it firmly back in line with other lending practices.”