Media comment: CMA investigation into the payday lending market
25 February 2015
In response to the CMA investigation into the payday lending market, Caroline Siarkiewicz, Head of UK Debt Advice Programme for the Money Advice Service, comments:
“This report is good news for consumers and points towards the possibility of greater clarity around the costs of borrowing. Payday loans still pose a risk for consumers, especially those who are experiencing unmanageable debt. Our research shows that payday loans are often used to cover other bills and credit commitments, which can act as a short term solution, but can increase the amount owed rather than resolving the original issue.
“If you are worried about money you should always seek free debt advice and research all options available before considering taking a loan. There is plenty of advice on the Money Advice Service website, including our pay day loan advice tool which offers alternative suggestions to borrowing and impartial advice to help get your finances back on track. You can also use our Debt Locator Tool at www.moneyadviceservice.org.uk/debt, which will help you locate high quality online, phone and face-to-face debt advice in your local area.”