Which? executive director, Richard Lloyd, said:
“This is yet further evidence that payday lenders are failing some of the most vulnerable consumers. The regulator must continue to take action to ensure that borrowers in difficulty are treated fairly and protected from falling further into a spiral of debt.
“We also want the FCA to keep the level of the price cap under review and look at unfair practices and excessive fees across the whole of the credit market.”
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]