Which? executive director, Richard Lloyd, said:
“Today’s Which? Quarterly Consumer Report found that 800,000 households took out a payday loan last month. With payday borrowers often getting caught in a downward spiral of debt, it’s important that the Office of Fair Trading uses the proposed new powers to stop unscrupulous lenders from trading if they are breaking the existing rules.
“The Government must now introduce wider, tougher rules for payday lenders to better protect consumers and ensure there is no gap in supervision as the new powers transfer to the Financial Conduct Authority.”