Which? executive director, Richard Lloyd, said:
“The payday lending market has been rife with poor practice but today’s proposals, alongside the Financial Conduct Authority’s price cap and tougher supervision, are a step in the right direction to make lenders start to compete on price and treat customers fairly.
“We now want to see the regulators turning their attention to unfair practices and excessive fees in the wider credit market, including unauthorised overdrafts.”
Previous Which? research has found:
· In 2014, each month an average of 880,000 households took out a payday loan. [December 2014, Which? Consumer Insight Tracker]
· More than a million households (4%) are using unauthorised overdrafts or payday loans [Which? Consumer Insight Squeezometer]
· Four in ten (39%) are worried about the level of their household debt [January 2015, Which? Consumer Insight Tracker]