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Payday loans market ‘showing signs of poor practice’
Written by David Varley on 26 September, 2011Poor practice in the payday loans market could be leading a growing number of people to need to seek debt advice, an expert has warned.
A report published by Which? Money has highlighted a number of issues in the way that companies in this sector operate, including inflated APRs, possible breaches of the Consumer Credit Act and low quality privacy provisions.
It highlighted the high rates charged on borrowing of this type and warned that some providers have not even received the necessary licence.
Richard Lloyd, executive director of Which?, has highlighted the fact that while these deals may seem attractive to those in need of money they should be considered a last resort.
He said: "They can be an incredibly expensive way to borrow and we've uncovered a long list of poor practice by lenders."
Last week, David Smith, economics editor at the Sunday Times, highlighted the fact that despite the financial conditions currently facing Brits fewer people have had to sell their money for debt reasons than in the recession of the 1990s.