Short term loans are being used for gambling but there is no way to test for gambling problems
The short term lenders, also known as payday lenders, of the UK have the Consumer Finance Association to represent them and regulate them. This was put into place over the past two years as a result of the intense controversy over payday lenders, their ethics and practices. Finally it seemed that the nature of a payday loan and what it should be used for was beginning to be understood. Payday loans are short term loans, quick loans, that a person can take out to tide them over until their next income installment comes through, at which point, due to the high interest rates, it is pretty much crucial that the loan be paid back. This is what the loan is designed for. The CFA goes on to advise the public that it is not a good idea to take out loans to pay off loans. Debt is rarely solved by taking out more debt. It would be wiser to seek advice from the various debt charities, the Association maintains.
Just when the payday companies were feeling understood and comfortable in their market niche, along comes the next issue to throw the questionable cape back over their services. What happens if the client is an addict? An alcoholic, a drug addict, these may be easy to identify, but what about the gamblers? The latest problem for the payday companies is that gamblers are taking out loans, walking down a few doors to the bookies and putting that money down as they bet on all and sundry. Not only that, but high profile sports celebrities have also fallen into the habit much to the determent of their personal finances and their careers.
There are several bodies that concern themselves with the welfare of footballers with regards to addiction. Gambling is the most prevalent issue says Sporting Chance, a rehabilitation clinic attached to the Professional Footballer’s Association Union. The charity is actually founded by ex-Arsenal and England defender Tony Adams, and the chief executive Colin Bland has this to say:
“We have had players who have got caught up in the scenario of taking out payday loans to place bets.”
Prime Minister David Cameron said, when asked to comment, that he was aware of the gambling problems that Britain faced as a Nation and though the government spends resources and man power on drug and alcohol addiction, gambling isn’t often addressed as it isn’t as transparent as the other two. Gambling can, however, be just as devastating.
It is par for the course, Sporting Chance turns and points at the payday firms and their “aggressive” advertising as the source of all evil. In their defense, the Remote Gambling Association assures that the regulations set by the Advertising Standards Authority and the Gambling Commission are tightly controlled and that irresponsible advertisement would not be tolerated.
Another attack on payday firms from another sector of society claiming that these short term loans are ruining their lives, but something doesn’t add up. 10 years ago there wasn’t such a thing as a payday loan, and the gamblers were still gambling and ruining their lives without any help.