Debt advice firms lobby for crackdown on payday loans sector
Debt advice firms lobby for crackdown on payday loans sector
Monday 28th July 2008
Latterly, demand for bad credit loans from non-high street providers has increased as mainstream lenders have shored up their lending criteria.
This trend has prompted the Office of Fair Trading (OFT) to launch a probe into the sector which could result in a more stringent regulatory framework for bad credit loan companies.
Charities National Debtline and Debt on Our Doorstep have welcomed the move but have stressed that the OFT must clamp down on such lenders as soon as possible to prevent them contributing to the UK-wide debt problem among consumers.
Damon Gibbons of Debt on Our Doorstep told BBC Online: "We certainly welcome the fact the OFT says it is looking at the issue of responsible lending more generally in the UK.
"But we want to push them further to ensure payday lending is at the top of their list and is acted on immediately."
He added: "We believe there is a lot more they could be doing to curb the worst excesses of the payday industry."
News of the investigation into the sector comes amid a surge in the number of Britons seeking out debt help from specialist debt advice companies this year, in the face of increasing pressure on their finances.
Debt1, official website of Byrom & Keeley - Experts in Debt Management
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