StepChange Debt Charity response to Business, Innovation and Skills Committee report into payday loans
20th December, 2013
In response to today’s report from the Business, Innovation and Skills Committee report on payday loans, Peter Tutton, head of policy at StepChange Debt Charity said:
“Today’s report is welcome: real-time data sharing, limits on rollovers, restrictions on advertising and funding for debt advice are crucial to addressing many of the problems associated with payday loans.
“While payday lenders have poured resources into attracting new clients, they have demonstrably failed to address the problems of widespread irresponsible lending and rollovers, problems which all too often pitch people into serious financial hardship. Ensuring that firms share data in real time will help to prevent multiple payday loan use and the spiral of debt that can result. While a limit of one rollover will help to protect consumers from rapidly inflating debts.
“Moves to tackle the problem of payday loan advertising via nuisance calls and texts are welcome. We know that this problem is widespread, 26.3 million people say they have received unsolicited calls and texts offering high-cost credit, such as payday loans. Regulators need to ensure that financially vulnerable consumers are not being targeted by unscrupulous firms offering high-cost and potentially harmful loans”.
Notes to editors:
- StepChange Debt Charity launched its Got their number: Ending the harm caused by nuisance calls and texts report and campaign on October 29, 2013 (PDF).
- Figures from YouGov Plc. Total sample size was 2,017 adults. Fieldwork was undertaken between 20th - 23rd September 2013. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+). StepChange Debt Charity calculations based on population figures from the ONS.