The Financial Times has a peice on Payday Loans last week. A couple of quotes:
“cheaper alternative for those facing unauthorised overdraft fees or personal reserve costs on their current account”. The growing payday loan market is little more than a decade old and still small in comparison with its US counterpart, according to the British Cheque Cashers Association, which estimates total loans are about £100m a year. They usually range between £50 and £800.”
“For the Consumer Credit Counselling Service, payday loans are the least worst solution for people who do not qualify for credit cards, in spite of the high interest rates.”
“For some people it’s the only sort of loans they have access to,” says Tom Howard, an official at the debt charity. “It’s better that they use those forms of credit rather than going to loan sharks who are illegal or perhaps more unscrupulous.” The Office of Fair Trading says it has had few complaints and its major concern as it reviews lending guidelines would be about rollover lending from month to month.”
