Richard Lloyd, Which? executive director said:
“Our research shows that a million households a month are using payday loans, often to cover essentials or repay other debt. If a third of all loans aren’t repaid on time that means thousands of borrowers are paying default fees, pushing them further into debt.
“Payday lenders must justify the level of their fees and the regulator must take action to ensure all fees are fair, proportionate and only reflect lenders’ costs.”
Notes to Editor
Which? recently launched its ‘Clean up Credit’ campaign which calls for the FCA to clamp down on excessive charges and irresponsible lending, and to make sure borrowers are being treated fairly whatever form of credit they’re using. The Which? Consumer Rights website has information and advice on how to complain about a payday lender. Visit www.which.co.uk/paydaycomplaint for more information.