Concerns have been raised in the US and the UK over the level of consumer detriment caused by payday lending, which has led to interest rate caps in a number of US states, effectively banning the practice. There are concerns that the impact of the recession in the UK will drive greater numbers of consumers towards this form of lending and trade discussions have indicated an intention for further expansion in this market. Consumer Focus has identified a need for policy development and advocacy in this area to ensure a fair deal for consumers in the UK as the market grows in the coming years.
Our new report Keeping the plates spinning (PDF 711KB) investigates payday lending in order to improve knowledge and understanding of this relatively new form of lending in the UK, and the benefits and risks associated with it for consumers.
Welsh translation: Cadw’ch pen uwchlaw’r dŵr (PDF 686KB)