Catherine McKinnell, Member of Parliament for Newcastle North, reacted with shock and dismay at the news that Newcastle United have today entered into a sponsorship deal with pay-day lenders Wonga.

Catherine said “Whilst I appreciate the importance of sponsorship to Football clubs, partnering with a pay-day lender is a tactical error.

“Pay-day lenders prey on the most vulnerable people in society, namely those on low incomes or unemployed. I know of many cases where constituents have turned to pay-day lenders in desperation and find themselves trapped in a cycle of debt at excessive interest rates of over 4000% per annum.

“During this double-dip recession, Wonga have seen their profits soar as many households struggle to make their income stretch to cover the rising costs of living.

“I am disappointed that the board has chosen to associate our club, brand and city with practices which too often penalise struggling families. I worry that by associating the club with such a company, it could normalise their practise and plunge many more families into the cycle of debt. Many will see this deal as money from misery.

“The Government must take steps to better regulate the consumer lending industry to stop companies taking advantage of people, often at their lowest point, by charging excessive interest rates. There also needs to be much better financial education to enable people to fully understand what a dreadful deal they are being offered.

“I would also like to see the Football Association take a firm stance on this issue and extend the ban on alcohol and gambling advertising to include payday loan companies on merchandise for under-18s.”