According to Consumer Focus, the number of people that have taken out payday loans has quadrupled since 1996. The financial watchdog finds this information to be very interesting due to the interest rate on these types of loans.
Now, the organization is asking the industry to introduce safeguards which may protect borrowers.
''Payday loans are a valid form of credit," said Sarah Brooks, head of financial services at Consumer Focus. She went on to say, "But we do think there needs to be a limit on the number of loans people take out and how many loans they are able to roll over."
According to the group, their research shows that 1.2 million people are taking out at least one payday loan every year. The group reiterates that for many people, payday loans are a quick and efficient way to obtain much-needed funding and if paid back immediately, Consumer Focus says that this type of lending may be cheaper than paying an overdraft fee or even interest on a credit card.
In need of a payday loan? Get the money you need by completing our online application today!