Payday Loan Problems Down, Which Is Good News.
The amount of payday loan credit problems being reported to Citizens Advice is down by nearly 50% compared to this time a year ago.
The Citizens Advice said it helped people with just over 5,000 payday loan problems across England and Wales from January to March 2015, which is a fall of 45% on the same period in 2014, when over 10,000 problems were reported to them.
The payday loans industry has undergone a huge change in regulation since coming under the control of the Financial Conduct Authority in April 2014.
In January 2015 a cap on the overall cost of a payday loan was brought in, meaning that borrowers who cannot afford to repay their debt on time will never pay back more in charges than the sum they initially borrowed.
Since coming under the Financial Conduct Authority’s supervision, payday lenders were banned from rolling over a loan more than twice and they can only now make two unsuccessful attempts to claim back money out of their bank account.
Citizens Advice welcomed the fall in payday loan problems, but said it is important to still keep a “watchful eye” on the industry.