Neidio i’r llywio Neidio i’r cynnwys Neidio i’r troedyn

Rydym yn defnyddio cwcis i wella eich profiad o'n gwefan.
Gallwch ddarganfod mwy neu ddileu allan o rai cwcis - mae'r polisïau hyn ar gael yn Saesneg.

Menu

Payday lenders set debt-trap for struggling families

21 Ebrill 2014

With one in four people coming to Citizens Advice with a debt problem, the charity highlights the financial struggles families are facing.

Citizens Advice Chief Executive Gillian Guy said:

“Payday lenders have set a debt-trap for struggling households.  In the battle to make ends meet people are turning to short-term loans just to get by.  A lack of checks, high interest rates and fees means what is supposed to be a quick fix turns into a long term nightmare.

“It’s not just payday lenders that are preying on the worst off.  Citizens Advice expects up to 60,000 log book loans to be taken out this year – 61% more than in 2011.  The industry brings together the worst of payday lenders and bailiffs with its threatening tactics, high interest rates and failure to check if people can afford to repay loans.

“People need more options for short-term credit.  There is a gaping hole in the market which allowed the boom in payday loans.  The time for a responsible alternative in the form of a micro-loan is long overdue."

“It is important creditors pay to help people who are in debt.  The FCA levy on consumer creditors should add to money for debt advice via the Money Advice Service, not be used to reduce the amount existing contributors have to give.”

Recent analysis from the charity shows that money worries are affecting those in and out of work.  People who are self-employed are just as likely to seek help from Citizens Advice with a debt problem as those who do not have job.  Just last week the latest employment figures revealed self-employment had hit an all-time high.

One in four of people who come to Citizens Advice for help have a debt problem.

Notes to editors:

  1. Citizens Advice calculated that logbook loans could reach up to 60,000 this year by multiplying the number of loans registered in the first two months of this year by six, to give a twelve month estimate.
  2. This year the Citizens Advice service celebrates its 75th anniversary. We’ve planned a year of activity running from January to December 2014. Contact the press office to find out more.
  3. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
  4. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  5. To find your local bureau in England and Wales, visit www.citizensadvice.org.uk. You can also get advice online at www.adviceguide.org.uk
  6. You can get consumer advice from the Citizens Advice consumer service on 08454 04 05 06 or 08454 04 05 05 for Welsh language speakers
  7. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 6.6 million problems from April 2012 to March 2013. For full 2012/2013 service statistics see our quarterly publication Advice trends
  8. Citizens Advice service staff are supported by more than 22,000 trained volunteers, working at over 3,000 service outlets across England and Wales.