The Labour-controlled Plymouth City Council has taken a pioneering step towards managing the effect that payday loans companies have on the public. Hoping to set a benchmark for other local authorities, Plymouth's proposed action will involve the prohibition of bus stop and billboard advertisements relating to payday loans, supported by banning access to the top 50 payday loan websites across computer networks owned by the council, including libraries.Having seen Cheshire East council perform a similar online block, Plymouth have taken an escalated stance by incorporating outdoor advertising in their restrictions. Plymouth cabinet member Chris Penberthy 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."
Presenting a counterargument, CEO of the Consumer Finance Association, Russell Hamblin-Boone, pointed out that "Research shows that 85% of payday customers have no trouble paying back their loans, so the council's belief that the loans are detrimental to those that take them is misplaced and not based on evidence."
Plymouth's clampdown on marketing activity rides alongside considerations from the Financial Conduct Authority, who are debating over the future of payday lenders in advance of their role as industry regulator which will commence in 2014.