Brits collectively owe nearly sixty billion pounds and, for once, short term loans companies can hardly be blamed as most of the debt is owed to a variety of sources and just a “smattering” to them.
A new survey conducted by YouGov, an international research company, into the attitudes and opinions of people who were or have been short term loans borrowers has caused something of a stir amongst those most passionately involved in the debate about the role of short term loans companies.
Instant cash loans supplied by payday lenders, which were once only rarely used, have since become a common occurrence, leading to serious problems for many who have found themselves falling deep into unmanageable levels of debt, experts say.
The Financial Services Bill which has just had its first reading in parliament will see the creation of a new regulatory body to replace the old Financial Services Authority as well as replacing some of the powers of the Office of Fair Trading.
One instant cash loan provider has begun to pay its own customers to market its short term loans to their Facebook friends, even though the interest rates charged by the lender are in excess of 20 times what it would cost a borrower if they used a typical credit card.
A surprising revelation from an unexpected source helps to illustrate why so many people are turning to sources of easily available credit like short term loans to get by from one day to the next.
The “perfect storm” is one of Ms Stella Creasy’s phrases that has been bandied out quite a bit of late by the Labour MP for Walthamstow in what has become a personal crusade against what she sees as “toxic” short term loans companies.
Wood Green is to be the site of a protest today aimed to shame money shops offering no credit check short term loans to local residents, it has been recently revealed.
There seems to be still considerable debate about whether the recent attempts by the government and the industry associations that represent the short term loans sector will be able to come to an agreement on what is acceptable practice by the industry as a whole.
Low-income earning customers across the UK can now gain access to a website that offers as much as 50 per cent off household goods in an effort to provide some respite from the high interest cash loans provided by payday lenders and other sources of expensive credit.