93% of Brits want better protection from payday lenders

If you’re fearful of running afoul of your creditors, especially those in the payday advance lending industry, you’re not alone – a new research project recently revealed that an overwhelming 93 per cent of Brits feel that they need to be protectedbetter from instant cash loan companies.

R3, the insolvency trade body that conducted the research, found that it’s not just the government and the clergy that have a problem with the payday lending industry.  It was nearly universal when it came to disgust and loathing expressed towards short term loan providers that charge ridiculous interest rates.

68 per cent of survey respondents demanded stricter instant cash loan advert regulations.  Meanwhile 65 per cent said that the total charges and fees allowed to be levied by payday lenders need to be capped.

Louise Brittain, R3 Council member, said it’s not easy to avoid the ‘quick and easy’ trap of the instant cash loan in the face of slick, sophisticated television adverts, but 93 per cent of those R3 asked say that the industry is in dire need of regulation.  The public is most concerned with both being given clearer indications as to how much an instant cash loan will actually cost, and that payday lenders are running purposely misleading adverts simply to generate the kind of business that sees more and more people trapped in an endless cycle of debt.

Borrowers who find themselves unable to repay their loan in full by the end of the term oftentimes have no choice but to ‘roll over’ the loan for an additional month, accruing massive late fees in the process that make it even harder to repay the loan, experts say.

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