Competition Commission Report provides stark evidence that payday loan companies are trapping people into long term debt
31 January, 2014
In response to the Competition Commission’s report on the Payday Lending Market today, StepChange Debt Charity’s Head of Policy, Peter Tutton said.
“We welcome the findings of the Competition Commission which confirm our own experience that payday loans are trapping people into long term debt. Control of the payday lending market is long overdue.
The number of people seeking help from StepChange Debt Charity for payday loan debt problems has increased sevenfold in five years. At the same time the average payday loan debt we have seen has grown to nearly £1,650 - more than they could possibly pay off in one month.
People are finding themselves saddled with one unaffordable payday loan after another. By actively encouraging people to rollover their loans or to take out multiple loans, payday lenders only add to the debt misery of thousands.”