A hot topic of controversy in the UK is bad credit loans. Are they helpful or hurtful?

1. The Good of bad credit loans debated
So-called “Bad Credit Loans” become topic of controversy in UK
It’s 10am and Laura Brenner sits in front of a computer at the East Cheshire Public Library googling “bad
credit loans.” It’s an all too familiar search for Laura, as well as hundreds of others in East Cheshire. Ms.
Brenner can’t get a loan because she has bad credit. She has bad credit because her bills are piling up,
and she doesn’t have a job. She can’t get a job because the job market is still stagnant. And here she is
at a public computer because she can’t afford one of her own.
Soon, however, she won’t be allowed to search for a quick loan on the computer she sits at now. The
council of East Cheshire has recently passed a law blocking access to 50 of the top bad credit loans
companies in the UK.
More than 3,700 public computers in libraries and other public buildings will be affected.
Council officials, after days of discussion, stick behind their decision. Many believe that these quick loans
are harmful to its 370,000 citizens, citing the companies are lending irresponsibly which are leading to
financial misery.
Many of the citizens are also reveling in the decision. “These places are just taking advantage of the
current situation and are trying to profit off people that are already down,” says Kyle Wilson, born and
raised in East Cheshire.
Ms. Brenner, however, is scared of what could happen. She’s relied on these online loans to pay for rent,
groceries, and medical bills for her daughter. Now, she’ll have no access to these payday sites, not even
to buy herself a computer.
Advocates of instant loans are beside themselves.
“Many times, people can’t be prepared for what life is going to throw at them,” exclaims Mike Panton,
owner of Get Same Day Loans. “Most people aren’t going out and buying expensive cars with our loans.

2. They’re buying groceries and diapers. We try to provide them with the finances to do so at the lowest
rate possible.”
“Sure, the rates may be a little higher than banks, but we offer the lowest rates we can for such short
notice,” he continues. “And we’re very upfront with everyone that walks into our doors so they’re very
clear on the terms of our loans.”
An urgent summit by the Office of Fair Trade has been called for next week. Government officials,
regulators, bad credit loans lenders and charities will all convene to discuss the issue.