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Football fans seek removal of Wonga ads from club websites Football fans seek removal of Wonga ads from club websites
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The fans of 18 football clubs have called on their sides to stop carrying advertising by payday lender Wonga on their websites, and are encouraging the supporters of more than 60 other clubs to follow suit.The fans of 18 football clubs have called on their sides to stop carrying advertising by payday lender Wonga on their websites, and are encouraging the supporters of more than 60 other clubs to follow suit.
In a letter published in the Guardian today, the football fans argue that while payday lenders are not conducting illegal business, "that is only because there are at present few if any laws restricting their activities in UK. Their practices would not be allowed in most other European countries, or in most of the USA." In a letter published in the Guardian, the football fans argue that while payday lenders are not conducting illegal business, "that is only because there are at present few if any laws restricting their activities in UK. Their practices would not be allowed in most other European countries, or in most of the USA."
The fans, led by Northampton Town supporter Bob Ward and his grandson Dan, ask their clubs to seek sources of advertising revenue other "than earning money from the dubious activities of Wonga.com", adding: "If they really wish to advertise short-term loans for their fans in these difficult financial times, then perhaps it would be better to give publicity to their local credit unions."The fans, led by Northampton Town supporter Bob Ward and his grandson Dan, ask their clubs to seek sources of advertising revenue other "than earning money from the dubious activities of Wonga.com", adding: "If they really wish to advertise short-term loans for their fans in these difficult financial times, then perhaps it would be better to give publicity to their local credit unions."
Wonga is the highest profile of about 200 firms offering short-term, high cost loans which are the subject of an ongoing investigation by the Office of Fair Trading. Payday lenders have attracted criticism from MPs and consumer groups for targeting low-income customers who often end up rolling over their borrowing and accruing huge charges.Wonga is the highest profile of about 200 firms offering short-term, high cost loans which are the subject of an ongoing investigation by the Office of Fair Trading. Payday lenders have attracted criticism from MPs and consumer groups for targeting low-income customers who often end up rolling over their borrowing and accruing huge charges.
The clubs are among more than 80 sides which use a website platform supplied by the Football League through its internet subsidiary Football League Interactive.The clubs are among more than 80 sides which use a website platform supplied by the Football League through its internet subsidiary Football League Interactive.
Ward, whose aluminium manufacturing company TMCCL sponsors a display board in the Northampton Town stadium, initially raised the issue of Wonga advertising with his own club. He was told that while the club can sell adverts to local companies, the Football League also sells network-wide advertising space to national and international companies. Ward, whose aluminium manufacturing company TMCCL sponsors a display board at Northampton's Sixfields stadium, initially raised the issue of Wonga advertising with his own club. He was told that while the club can sell adverts to local companies, the Football League also sells network-wide advertising space to national and international companies.
Ward said: "Individual clubs can request to have certain adverts blocked, however the club would then lose its share of the revenue raised from the advert."Ward said: "Individual clubs can request to have certain adverts blocked, however the club would then lose its share of the revenue raised from the advert."
Gareth Willsher, media manager for Northampton Town, said clubs relied on the Football League's judgement to ensure that a company or advert is appropriate to appear on its members' websites. But he added: "We have asked Football League Interactive how much it would cost the club not to carry the adverts. When I get that information I will present it to the chairman."Gareth Willsher, media manager for Northampton Town, said clubs relied on the Football League's judgement to ensure that a company or advert is appropriate to appear on its members' websites. But he added: "We have asked Football League Interactive how much it would cost the club not to carry the adverts. When I get that information I will present it to the chairman."
Wonga's advertising spend has grown from approximately £22,000 in 2009 to £16m in 2011, according to analysts AC Nielson MMS, and the brand is currently plastered over London's buses and the shirts of Blackpool and Heart of Midlothian football teams.Wonga's advertising spend has grown from approximately £22,000 in 2009 to £16m in 2011, according to analysts AC Nielson MMS, and the brand is currently plastered over London's buses and the shirts of Blackpool and Heart of Midlothian football teams.
One club official said it would be difficult for clubs to ban advertising for payday lenders while accepting adverts for alcohol and gambling.One club official said it would be difficult for clubs to ban advertising for payday lenders while accepting adverts for alcohol and gambling.
However, other companies are rejecting adverts by payday lenders. PayPoint, the bill payment system, has suspended advertising from payday loan companies while the Office of Fair Trading carries out its review into whether lenders are targeting vulnerable borrowers.However, other companies are rejecting adverts by payday lenders. PayPoint, the bill payment system, has suspended advertising from payday loan companies while the Office of Fair Trading carries out its review into whether lenders are targeting vulnerable borrowers.
The company, which runs counters around the UK at which householders can pay bills in cash, had been carrying payday loan adverts on receipts given to consumers when they used its service. However, it said that "given the industry-wide scope" of the OFT's inquiry it had put this on hold. Once a pre-booked campaign has ended, payday loan company adverts will no longer appear.The company, which runs counters around the UK at which householders can pay bills in cash, had been carrying payday loan adverts on receipts given to consumers when they used its service. However, it said that "given the industry-wide scope" of the OFT's inquiry it had put this on hold. Once a pre-booked campaign has ended, payday loan company adverts will no longer appear.
Seamus Smith, managing director of PayPoint UK, said: "While we satisfy ourselves that the companies advertising on our receipts are fully compliant with the markets in which they operate, in this case, based on information received from the OFT, we believe it is right to step back and await the outcome of their investigation."Seamus Smith, managing director of PayPoint UK, said: "While we satisfy ourselves that the companies advertising on our receipts are fully compliant with the markets in which they operate, in this case, based on information received from the OFT, we believe it is right to step back and await the outcome of their investigation."
In January, Transport for London excluded Wonga and other high cost lenders from its sponsorship deals following bad publicity of Wonga's sponsorship of free travel on New Year's Eve 2010.In January, Transport for London excluded Wonga and other high cost lenders from its sponsorship deals following bad publicity of Wonga's sponsorship of free travel on New Year's Eve 2010.
Graeme Craig, commercial development director at TfL, said the company was working on a new sponsorship policy which would set out the type of companies from which TfL would accept corporate sponsorship in the future. He said: "TfL has no plans for corporate sponsorship that involve payday loan companies."Graeme Craig, commercial development director at TfL, said the company was working on a new sponsorship policy which would set out the type of companies from which TfL would accept corporate sponsorship in the future. He said: "TfL has no plans for corporate sponsorship that involve payday loan companies."