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Payday Lender Invited To Teach Children About Finances

by Jim ONeil on February 17, 2012

in Payday Loans News

In what some would call an ironic twist, staff from payday lender Dollar Financial UK are providing money management advice to children. Payday lenders are known for charging extremely high loans APR. While some consumers find this financing beneficial, others wind up with huge loans debt because they are unable to repay the principal, interest, and other fees.

Therefore, it seems strange that their children would be learning about these no credit check loans.

Dollar Financial UK staff are conducting hourly educational sessions for students ages 12 to 16. During the seminars, children learn about budgeting, risk, and financial planning. Some campaigners are furious, saying that school children should not be exposed to the company, which owns high street lender The Money Shop.

According to Labor MP Stella Creasy, who is seeking regulation of payday financing, these lenders are now receiving assistance in their quest to appear socially responsible. However, this lender in particular charges a 260 percent loans APR for a 30-day loan.

She does not feel that such companies should be part of the UK educational system until the cost of this credit is capped through regulation.

Ms. Creasy noted that many parents of UK schoolchildren share her concern. Young Enterprise, the program organizer, provided assurance that the Money Shop staff was not permitted to promote the business to the children.

Catherine Marchant, chief executive of Money Shop, clarified that a Young Enterprise manager actually teaches the courses, while Money Shop staff merely help students develop a set booklet.

Protests have already been staged outside some Money Shop stores in response to the program. Young Enterprise revealed that it was paid £15,000 by Dollar Financial UK for the sessions.

On Tuesday night, it cancelled a session scheduled in Medway, Kent, due to fears that the protests would move to the local schools.

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