• News Feeds
Page last updated at 09:28 GMT, Wednesday, 7 December 2011

Payday loans 'cheaper than overdraft charges'

Advertisement

A survey suggests more than 3.5 million people are likely to take out a high-interest payday loan over the next six months.

R3, which represents insolvency practitioners, questioned around 2,000 people and found 60% of those who had taken out a short-term loan regretted doing so, while a third had to borrow more money as they could not pay it off.

John Lamidey, chief executive of the Consumer Finance Association, which represents payday loan companies told Today presenter John Humphrys that they offered a cheaper alternative to bank overdraft charges.

Defending what he said were "very high standards" in the industry, he said that research had shown that "94% of customers are satisfied" with the arrangements.


Get in touch with Today via email , Twitter or Facebook or text us on 84844.

Story Tools

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific