R3 welcomes FCA payday loan proposals
R3 welcomes the new proposals from the Financial Conduct Authority on the regulation of the payday loan industry.
R3 president Liz Bingham says: "Our members have become increasingly concerned about the impact of payday loans on the UK’s personal finances. While short-term, high cost credit does have its uses, the current payday market makes it too easy for financially vulnerable people to get caught in a debt trap."
"It’s encouraging to see the FCA not shy away from looking into the key concerns about the industry, including continuous payment authority, rollovers, and advertising. It's important that the FCA follows up its proposals by ensuring they are fully implemented from next year. The FCA is talking the talk, but it has to walk the walk too."
R3 and ComRes regularly poll British adults on their thoughts on payday loans:
- In June, 7% of British adults said they were likely to take out a payday loan in the next six months – down from 11% in October 2012 (the peak recorded by R3 and ComRes)
- 17% of 18-34 year olds are likely to take out a payday loan in the next six months – compared to just 3% of 35+ year olds (June 2013)
- For 18-24 year olds with debt worries, almost one-in-five (19%) are concerned about their level of payday loan debt (June 2013) – up from 8% in February 2013 and 14% in October 2012.
- Methodology: ComRes interviewed 2,060 GB adults online between 31st May and 2nd June 2013. Data were weighted to be demographically representative of all British adults aged 18+. A lower sample size (94) made up the group of those who have taken a payday loan in the past six months. ComRes also interviewed 2,007 adults online between 1st and 3rd February 2013, and 2,051 British adults online from 28th and 30th September 2012. Data were weighted to be demographically representative of all British adults aged 18+.ComRes is a member of the British Polling Council and abides by its rules (www.britishpollingcouncil.org).
- R3’s full report can be read here.
- Full data tables are available on the ComRes website, www.comres.co.uk
- R3 is the trade body for Insolvency Professionals, and is made up of 97% of the UK’s Insolvency Practitioners.
- R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by one of nine recognised professional bodies.
- R3 stands for ‘Rescue, Recovery, and Renewal’ and is also known as the Association of Business Recovery Professionals. Website www.r3.org.uk