Payday loan advertising ban in University of East London does not resolve problem
While the advertising ban on payday loans in University of East London is a decisive step that may relieve the rising number of its students saddled in payday loans, it remains an indirect and not a causative solution.
Advertising within the campus for payday lending may reduce the awareness on payday lending but does not institute a systematic solution that will keep the students from applying to payday loans. According to the University data, 42% of its under-25 age-group students have payday loan problems. This is an extremely high data. But, to take this data into context is a more complicated situation.
State government-backed student loans have been unable to solve the cash needs of students. Cutbacks on social spending by the UK government have hurt and have forced the students to take other means to pay off their study expenses. Payday loans were the students’ idea to immediate reliefs from their cash needs. In this situation, punishing payday lenders like UK Loans Online, with advertising ban is not going to help the situation.
It will only drive the students to hunt payday lenders where it is most accessible – the Internet. And the Internet is a vast arena where thousands of payday lenders are always ready to provide quick cash. One example is . The problem is going to be more complicated in this sense. And the students will be more vulnerable in this way. There is a higher chance for them to be victimized online by payday lenders who can be worse than payday lenders that advertise online.
It will be too strong a word to call the advertising ban as short-sighted but it will also be patronizing to call it as effective. The University of East London can do a much bigger act in providing assistance to its students. The most effective solution will be for the University to consolidate a student loan program with stronger government-backing. It is time for the University and the UK government to act appropriately on this matter so that students can be relieved of their cash woes.