Scotland is home to the highest number of payday loan debtors

December 30, 2013

Despite the Government’s recent plans to cap payday loans, it could be too late for many unable to repay spiralling loan charges.

Recent statistics from debt charity StepChange  revealed that Scotland has the highest number of people in debt to payday lenders. Citizens Advice Bureau (CAB) Scotland admitted to seeing over 100 cases per week of people struggling to repay payday loans.

Policy manager for CAB Scotland Keith Dryburgh, said that payday loans were one of the “main issues” seen at CAB Scotland and suggested the payday lenders were to blame. He said: “Having asked many of our clients how they have got into these difficulties, we’ve found that many payday lenders operate in ways that ensure people will get into debt they can’t handle. Some lenders routinely target low-income groups, mislead about their charges, impose massive interest rates and then employ drastic efforts to recover the debt.”

Investigations into the payday loan industry were carried out in a recent BBC documentary and revealed that although many people take out a payday loan as a last resort when they are desperate to make ends meet, some simply use the cash for non-essential luxuries such as nights out and clothes. The documentary also raised questions about whether the efforts made to control payday lenders are enough.

Mr Dryburgh added: “The industry had promised to clean up its act, but our evidence is that lenders are still operating in ways that are bound to hurt vulnerable people and trap them in long term debt.”

If you’re in debt to a payday lender and the charges are spiralling out of control, why not speak to one of our experienced debt advisers at Scotland Debt Solutions? Our knowledgeable team can offer you expert advice based on your individual situation and we’ll do our best to get you finances back on track.

John Baird

Insolvency Adviser

Tel: 0800 063 9250

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