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EMAILWIRE.COM, July 28, 2013 ) London, UK -- StepChange said in its study that just in the first half of 2013 that 30,762 borrowers asked for debt assistance between January and June of 2013, which is only about 5,000 less than
the 36,413 borrowers they counseled in the entire year of 2012. The data was released amid reports that Paul Blomfield would be imposing tighter lending regulations on the payday loan industry.
Blomfield and other payday loan criticizers have accused money lenders of being irresponsible and intentionally misleading consumers with annual percentage rates that often exceed 4 percent. According to StepChange, there was only an incremental increase in the average
amount of money owed by the company's clients, which rose from just 8 euros to 1,665 euros.
Shockingly, over 7,000 consumers according to the study had five or more payday loans to their name. The organization believes this is a clear indication that lenders are failing to conduct adequate affordability checks, only adding fuel to Blomfield's fire that the payday loan sector
needs more stringent regulations.
He says that while payday lenders target people who are short of cash and claim to help those in need, they rip them off with misleading advertisements by charging them outrageous interest rates and "push vulnerable people further into a spiral of debt".
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