Payday lenders still causing concern
A recent report published by The Business, Innovation and Skills Committee (BIS) has highlighted how many Brits are very concerned about their levels of debt, particularly in the current financial climate, where money is already tight and families are struggling to make ends meet financially. Many people are having to turn to payday lenders in order to make ends meet each month and this in itself is causing concern amongst industry officials.
The Debt Management Report from the BIS showed that around 60 percent of people were concerned about their debt levels, which represented the highest ever level of concern over debts. The financial situations of many people are forcing them into seeking loans from payday lenders, which in many cases is pushing them even further into debt.
These payday loans, with their crippling interest rates, have been at the centre of controversy lately but many consumers still turn to them even though they know that they will be stung with high rates of interest. For the lenders, business has been booming and one industry expert said that these lenders viewed the industry as "a crock of gold at the end of the rainbow".
He said that this would not be allowed in other countries and that the UK had become "the only wild west for payday lenders".
One finance expert from the consumer watchdog Consumer Focus said that the most vulnerable people were finding themselves at risk of huge issues due to going to payday lenders and that these lenders were continuing to operate irresponsibly.
She said: "The payday loan industry has had the chance to put its own house in order but has failed to stamp down on irresponsible lending. In the meantime, consumers, often those on the lowest incomes, are losing out."
15th March 2012