MORE than three-quarters of parents in the South of England want payday loan companies to be banned from broadcasting TV and radio adverts to children.

A YouGov survey, commissioned by The Children’s Society, found that 77% of parents across the region want a ban on payday loan adverts from airing on TV and radio before the 9pm watershed.

Payday loan companies provide short-term cash advances at annual interest rates in excess of 6,000%, which can plunge families into problem debt. Despite this, children are routinely exposed to adverts for payday loan companies.

A YouGov survey of children aged 13-17 across the country found almost three quarters (72%) had seen or heard an advert for payday loans in the last seven days.

The name recognition of payday loan firms among teenagers is extremely high, with 93% knowing at least one of eight top payday loan companies. More than half of children (55%) were able to recognise at least three lenders.

One third (34%) of children surveyed found payday loan adverts to be fun, tempting or exciting – and this group were significantly more likely to say they would consider using a payday loan in the future.

Meanwhile one third (34%) of parents surveyed by YouGov across the country believe payday lenders’ adverts deliberately target children. And more than one quarter (27%) think the companies put pressure on children to pester their parents to borrow money.

It follows research by Ofcom last December that showed the number of payday loan adverts on television had increased by more than 20 times over the past four years to 397,000. The research found more than half (55%) of all payday loans adverts on TV were broadcast in the daytime schedule between 9:30am and 4:59pm.

The Children’s Society – through its Debt Trap campaign – is calling for restrictions on loan advertising to join those already in place to protect children from adverts for gambling, alcohol, tobacco and junk food.

In particular, the charity is urging the Government to amend the Consumer Rights Bill to ban payday loan advertisements shown on television and radio before the 9pm watershed.

Matthew Reed, Chief Executive of The Children’s Society, said: “Through our front-line work we see first-hand the devastating impact of debt on children's lives. We know it’s become a daily battle for families to pay the bills, meet the mortgage or rent payments, and find money for food or other basics. One setback or even a simple mistake can lead to a spiral of debt.

“Right now children are being exposed to a barrage of payday loan adverts, which put even more pressure on families struggling to make ends meet and to provide the very basics for their children. That’s why the law should be changed to ban these ads from TV and radio before the 9pm watershed.

“It is crucial that children learn about borrowing and money from their school and family - not from irresponsible payday loan advertising. A significant majority of parents in the South of England back a ban and it’s now time for the Government to act.”

A report earlier this year by The Children’s Society and StepChange Debt Charity, The Debt Trap: Exposing the impact of problem debt on children, showed how family debt causes children to suffer from worry and anxiety, experience bullying and miss out on essentials.

A survey commissioned for the report found almost half a million children across the South live in families owing a total of £1.2bn in bills and loans. It also found that more than half of all 10 to 17-year olds see payday loan adverts “often” or “all the time”.

The Children’s Society’s Debt Trap campaign aims to expose the damage debt does to children and to take the pressure off families who are struggling to make ends meet