Are payday loan companies targeting children?

5 November 2013

child saving money There's some kerfuffle over payday lenders presently, but the latest accusation is one of the gravest. Moneysavingexpert's Martin Lewis has accused them of grooming children.

It seems that the next generation of borrowers are being wooed with adverts on children's TV channels (although, you'd have to assume that they're actually targeting the parents at home with them) and he's said that one in three people with kids under 10 years-old say their children can already repeat payday loan company slogans from commericals.

According to his figures, nearly 15%  reckon their children are urging them to get a payday loan when they refuse to buy them something. As such, Lewis thinks payday loan ads should be banned from children's TV channels and that they shouldn't look fun and cuddly "rather than a hardcore form of debt".

In a statement, he said: "Where adverts are permitted, they need to include a string of wealth warnings to ensure the fun is taken away. Payday loans are part of the costliest kind of instant gratification culture. Now these lenders are essentially grooming children to be the next generation of borrowers."

"The current explosion in the number of people borrowing in this way is nothing compared to how the next generation will act. Payday lenders are now so profitable, they have huge advertising and film budgets which bring in more customers, making even more profit. That's why we need legislation or regulation to disrupt this market."

TOPICS:   Advertising   TV   Debt


  • fibbingarchie
    The biggest influence on children will be seeing their parents attitude to money and finance.
  • hotmail r.
    Can't children repeat all adverts?
  • Jaff
    It's a bit OTT, I wanted loads of things when I was younger, doesn't mean I want them now. Lots of children play guns but they don't (all) turn into murderers. fibbingarchie has got it spot on though, plenty of academic research backing that up. So surely it's actually good that these kids are seeing them and then being told they are not good? They learn the lesson then, rather than seeing it later on.

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