Insolvency body chairman wants OFT to reveal figures

One insolvency trade body regional chairman recently said that the Office of Fair Trading needs to reveal the figures of how man Brits are using short term loans to help get them through the month.

R3 regional chairman, Andrew Walker, remarked that a better way to avoid debt would be to educate consumers on financial management techniques instead of allowing them to resort to short term loans to get them to their next payday.  According to a recently conducted research study by the insolvency trade body suggests that 3.5 million Brits may be considering instant cash loans over the coming six months in order to help make ends meet.

According to the survey results, approximately 60 per cent of respondents indicated regret after taking out short term loans.  Mr Walker remarked that, in light of the research findings, the OFT should be collecting and publishing figures concerning the payday lending industry.

The OFT regulates the industry, the regional chairman added, as these lenders cannot operate without a consumer credit license.  The number of loans taken out annually, the number of the loans that rolled over, and the value of these loans need to be made public, Mr Walker insisted, suggesting that the OFT should either begin collection of such figures – or if they do collect such data, to publish them.

Pearson Jones deputy managing director, Peter Heckingbottom, stated that borrowers need to be protected from over-exposure to debt by the institution of regulations.  However, payday lending does have its own place in financial planning, Mr Heckingbottom also said.

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