In response to today’s announcement by the Financial Conduct Authority (FCA) that it has launched tough new rules on payday lenders, Michael Ossei, personal finance expert at Uswitch.com, says: “It’s reassuring that the FCA has now stepped in and is standing up to these companies. It’s high time for tough, straight talking guidelines and ultimately strict regulation of this sector.
“Payday loan companies do have a role to play in providing short term credit to those who need it quickly in order to fill a gap until they get paid. In fact, our research shows that almost half (49%) of those who have taken out a payday loan claim the experience has been positive. Consumers also believe that payday loans serve a purpose for borrowers in need of quick and easy cash (51%). But there is still an uncomfortably large chunk of vulnerable people who have been preyed on by unscrupulous lenders. They have been enticed by the glossy advertising and signed up without adequate affordability checks, all the while being unaware of the real implications of taking out this type of loan.
“Consumer education is key and we would like to see the FCA and the Government do more to inform consumers about the options available to them if they are in financial hardship. What is clear is that some of these rogue traders will only respond to tough action – and this is the toughest we have seen yet.”
FOR MORE INFORMATION
Charlotte Nunes
Phone: 020 7148 4664
Email: charlotte.nunes@uswitch.com
Twitter: @uswitchPR
Notes to editors
All stats mentioned in the comment are from research carried out online with One Poll in July 2013 amongst a sample of 2,000 GB adults.
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