Since 2010 the number of people experiencing financial difficulties has more than doubled. According to figures released from the Consume Credit Counselling Service (CCCS) a considerable number of borrowers have contacted debt councils for advise on how to manage their finances.
Since 2010, according to a report from the organisation, the number of people contacting them for advice has risen from 7,841 to 17,414. Payday loans have been criticised by a group of MPS, for encouraging people to get into debt by charging extortionate repayment rates and they have asked the government to tighten up regulations.
Payday loans firms can charge in excess of 1400 percent which is deemed very irresponsible on the part of the lenders. The CCCS informed the Daily Telegraph that "payday loans are a new type of lending which does meet customer needs but it has been open to severe malpractice and therefore needs close monitoring."