ADVICE centres in Oxford have backed the Archbishop of Canterbury’s move to force payday loan companies out of business.

The Oxford Citizens Advice Bureau is among the local centres supporting the Most Rev Justin Welby’s plans to create a network of credit unions that will compete with payday lenders like Wonga.

David Soward, the centre’s consumer empowerment partnership project coordinator, said: “We are delighted the Archbishop is taking this stance.

“We are right behind him. We are in the middle of building up a campaign against payday lenders and we would love to recruit him to our cause.”

Some payday loan companies have annual percentage rates which run into the thousands, meaning someone who takes out a small loan could end up with a massive debt and penalty charges.

Increasing numbers of people are seeking help and advice about debt at the Rose Hill and Donnington Advice Centre, according to manager Carole Roberts.

She said: “We are seeing people affected by these payday loans all the time.

“Every day people are coming to us for advice about debt.

“The changes in the benefit system are making it harder for people, so they are turning to these places for a quick fix.

“Unfortunately it never is, and people end up repaying more and more over time.”

One man who was suicidal after racking up more than £30,000 in loan debts, has also welcomed action against high-interest firms.

In 2011, Dorian Rodney, 50, was so desperate that he was talked out of jumping off the roof of the Westgate car park by police negotiators.

The former nightclub doorman, who is currently writing a book, did not use a payday loans company but said he could see why people would.

Mr Rodney, of Coopers Lane, Abingdon, took out a series of bank loans, and from interest charges on £17,000 had to pay back £32,000.

He said: “I would never, ever recommend anyone to take out one of these payday loans and Wonga seems to be one of the worst.

“They give people the dream of money but it becomes a nightmare. I have seen all these kind of things online and you can see why people would be attracted.

“Getting into debt was horrific and people should look to other ways of getting help.”

Citizens Advice chief executive Gillian Guy said the harmful impact of payday lenders was undeniable.

She said: “We have recently seen a report where a borrower facing staggering debt contemplated suicide.”

She added: “Payday lenders are trapping people in cycles of never-ending debt – a far cry from their responsibility to treat their customers fairly,” she said.

Wonga did not respond to the Oxford Mail’s request for a comment.

  • The Archbishop came under fire for his comments about Wonga after it was revealed the Church of England had indirectly invested in the lender.

He promised yesterday the church would conduct a review of its investment processes.