It comes as no surprise that a recent poll identified seven out of ten consumers want a cap imposed on interest payable credit and store cards. The group ‘Consumer Focus’ has recently suggested that 1.2 million people are now taking out short-term ‘payday loans’ every year. The total borrowing is a staggering £1.2 billion.
Though these ‘payday loans’ offer a quick means of getting hold of credit, providers have quite rightly been criticised for charging interest rates of more than 2,500% a year. These and other similar loans that offer unsecured credit can cause significant distress for the unwary consumer. They have been said to be nothing more that legalised loan sharks.
Research undertaken by YouGov found that 68% of people felt that it should be the Government who should protect consumers but 69% of people felt that the Government should do more than they do. Clearly consumers are of the opinion that the recent reforms do not go far enough.
I hope that the coalition Government can see through their commitment to create a fairer society.