A payday loans firm’s bid to open a branch in Trowbridge has sparked anger from debt experts after fears the firm’s annual percentage rate (APR) for interest of 2,115 per cent could land Wiltshire people in financial trouble.

Cheque Centre has applied for permission to open in the Castle Place shopping centre.

If the shop gets the go-ahead, it will follow Cash Generator which opened in Fore Street this year. It too offers payday loans at the same APR.

There are concerns that making payday loans readily available on the high street will encourage more people to take them up.

Sam Selman, president of the West Wiltshire Credit Union, said: “People tend to think short term when it comes to their finances and, at the end of the day, these payday loan companies are there to make money from people.

“The problem is that it is very tempting to just walk in and walk out with money. Unfortunately, it is very easy to get into debt, but difficult to get out of it.

“The credit union is all about saving money for a rainy day and securing your financial future. We work as volunteers for our members and we don’t seek to make a profit out of them.”

Consumer watchdog Which? investigated payday loans and found borrowers were being encouraged to extend the term of their loan, often for several months, while others were offered much bigger loans, even though they had not shown any interest in them.

South West Wiltshire MP Dr Andrew Murrison said: “I am very concerned about this store opening.

“The offer of quick money for people in vulnerable situations from these organisations is tempting, but people can quite often get themselves in a real state. I would encourage people to think carefully before taking on loans at these rates.”

The MP added that the issue had been discussed in Parliament.

“This is something the government is very much aware of and a private members bill was discussed back in May I believe,” he said.

“The main objection to closing these companies down is that their clients would move on to loan sharks whose practices are extremely dubious.

“Personally I am sympathetic to introducing some sort of limit on the level of interest which can be applied to loans, such as they have in parts of North America.”

Jason Wassell, a spokesman for Cheque Centre, said: “We are one the UK’s leading alternative financial services companies and are delighted to be opening this new branch. We do offer short term loans and, as a responsible business, we have steps in place to ensure we make good lending decisions.

“If there are concerns about our products, and there is fair amount of misinformation, then we are always happy to talk to community leaders.” Authorised overdrafts and credits cards can offer cheaper alternatives to payday loans, while credit unions offer loans at an APR capped at 26.8 per cent.

Information is available from Jobcentre Plus on the Govern-ment’s Social Fund, which can provide crisis loans for emergencies and budgeting loans for those on benefits.

Credit unions run in Trowbridge on Mondays, at the Manor Road tenants and residents association offices in Studley Green, from 3pm until 4pm, at The Cabin, Seymour Road, on Wednesdays from 3pm to 4pm and at the Selwood Housing Society, on Bryers Ash Business Park, on Tuesdays from noon until 2pm.

For details on the West Wiltshire Credit Union, call 01225 709865 or see www.communityfirst.org.uk/ index.php/credit-unions.