Two-thirds of payday loan cases have had no financial checks carried out to make sure borrowers will be able to repay the loan, according to research by the Citizens Advice.
The charity has branded the lenders ‘irresponsible' for not attempting to ensure borrowers will be able to repay, something which has led to 70% being unable to pay back their loans. The figures took into account 1,270 loans from 87 different payday lenders between November 2012 and March 2013. This included one case where £57 was repaid each month on a payday loan of £500 but the debt still stood at £437 after six months. Citizens Advice added that over 70% of lenders did not explain how much it would cost the consumer to extend the loan while 84% of customers felt they were not trea...
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