Bosses for the Citizens Advice Bureau in East Durham are displeased to see a new instant cash loans storefront opening in Peterlee, instant cash loan experts recently reported.
Durham City Council chose to grant The Money Shop’s planning application to take over a vacated storefront in Castle Dene Shopping Centre, at the former site of a Claire’s Accessories store. When the application was first submitted several months ago, the chief executive of East Durham CAB, Neil Bradbury, came forward to express his concerns that the debt problems of those living in the vicinity would be exacerbated by a payday advance lender opening its doors in the region.
Despite the concerns of the CAB, the local authority granted planning permission for The Money Shop in February, and the shop has since opened its doors and has begun trading. Mr Bradbury expressed his disapointment at Durham City Council’s decision, stating that the CAB feared the effects of having yet another cash shop in Peterlee town centre, adding that payday lenders and pawnbrokers have begun to choke out retail shops like weeds.
More and more local Brits have been coming to the CAB with massive debt levels generated by payday lending, the chief executive said, raising concerns within the organisation. However, a spokesman from The Money Shop spoke out against the assertions, stating that the lender is regulated by the Office of Fair Trading and is one of the founding members of the Consumer Finance Association, fully bound by its code of practice.
The Money Shop provides responsible payday lending, the spokesman added, stating that the firm only offers lending to those with an income and a bank account.