Wednesday, 2 October 2013

Asda takes action on payday loan vouchers



Asda takes action on payday loan vouchers
The Big Issue in the North’s inquiry into Asda gift vouchers being offered as an inducement to take out unsecured doorstep loans has led the supermarket giant to act to block the practice.
In July, Rotherham-based KDS Finance advertised vouchers from the supermarket giant when it handed out leaflets door to door and canvassed residents in parts of Halifax close to the Asda superstore in the West Yorkshire town.
The KDS representative offered £100 worth of vouchers and said: “Once you have got a payment record then you can get more cash or vouchers.”
KDS offers loans of up to £500 on its website, with payment of £45 a week for 16 weeks.
‘Unacceptable’
The annual percentage rate of interest averages 963.9 per cent. A company sales collector collects weekly repayments at people’s homes.
At the time an Asda spokesperson said: “This is absolutely unacceptable and not a practice that Asda supports. We’re investigating with our gift card supplier as a priority.”
However, following further inquiries last week a company spokesman admitted Asda had been unable to prevent the practice continuing but said: “We are currently working with our cards agency to stop this activity as soon as possible.”
Third party
Twenty-four hours later Asda informed The Big Issue in the North that the third party agency that supplied the cards had been informed not to provide any more to KDS.

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