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Stella Creasy: Payday loan figures are shocking

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A survey of 2,000 people out today shows that the number of them who would consider taking out a short term, high interest "pay day" loan is much higher than last year.

It is a survey by R3, the professional body for accountants and lawyers offering insolvency advice.

Young adults are most likely to consider loans, and sometimes they are hit by extraordinary interest rates.

The Labour MP Stella Creasy, who has campaigned against pay day loans, told the Today programme: These figures are shocking because they say that people are choosing to pay back their payday loans rather than feed themselves. These are people borrowing for basics, borrowing to put food on the table."

Russell Hamblin-Boone, Chief Executive of the Consumer Finance Association which representing loan finance companies, said: "The majority of payday customers pay off their loans in full and on time. What the report is highlighting is a growing demand as a result of the uncertain economy."


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