R3, the trade body which represents insolvency practitioners, welcomes the new proposals from the Financial Conduct Authority on the regulation of the payday loan industry.
R3’s North West regional chair Jeremy Oddie, who is also head of recoveries at accountants Mitchell Charlesworth, 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 carries out regular research in the North West into payday loans.
· In June, 10% of adults in the North West said they were planning to take out a payday loan in the next six months. This was down from 12% in October 2012.
· However the North West remained one of the areas with highest demand, second only to London where 15% of adults said they were likely to take out a payday loan in the next six months.
The survey questioned over 2,000 people throughout the UK including 244 from the North West. It found that demand for payday loans was highest amongst those aged 18 to 34.This younger age group was also the most concerned about the impact of payday loans on their finances.
R3 is the trade body for Insolvency Professionals, and is made up of 97% of the UK’s Insolvency Practitioners from all over the UK.
R3 comments on a wide variety of personal and corporate insolvency issues. Please contact the press office, or see www.r3.org.uk for further information.
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.