WiredGov Newswire (news from other organisations)
 Printable version
|
 E-mail this to a friend
|
CAB - Payday loan cap needs to be coupled with more choice for consumers
As the Government announces a cap on the cost of a payday loan, Citizens Advice highlights the need for reforms in the market and for banks to offer an alternative, such as a short-term micro-loan.
Citizens Advice Chief Executive Gillian Guy said:
“This is a cap on the exploitation of people struggling with the rising cost of living. Payday lenders have failed to stick to their own promises to treat customers fairly. The Government's plan to cap the cost of loans only goes to show how out of control the industry is.
“The extortionate interest rates, hidden charges and lack of financial checks have pushed many payday loan customers into serious financial hardship. As our new figures out today show, three in four people who take out payday loans get into difficulties.
