In a report released by a group of experts on insolvency, they made claims that millions of British salaried class people, in the following six months, may apply for payday loans to sort out their daily needs even if they would be required to pay a rate of interest that is going to be quite high.
The officials at R3, that claims itself to be a representative of the professionals who are working under tough situations of cash crisis, said that they made all these claims only after they had taken an interview of not less but around 2000 people from this very bracket. But very much contrary to this, John Lamidey who is a part of the Consumer Finance Association, was of the view that these figures were not true at all. This organization is a representative of the companies who offer payday loan.
The authorities at the Downing Street are saying that they are making efforts that they bring a code of conduct into the industry.
They report revealed that around 60 per cent of the people who were surveyed were very much tensed because of the debts that they were under as well as almost around 45 per cent of the people were facing a lot of trouble in running their monthly salary till the time their next salary comes. This is what R3 had said in their report. The officials also added that the tensions which were doing round in the present times about money were the highest that has ever been seen. The organizations which were on the side of the consumers were of the view that the companies which are offering payday loans should be brought under strict rules.
In the age group of 22-44 years, there were around 62 per cent of the salaried people who were not able to make use of their salary till their payday comes. 1 out of every sixth person is know as a zombie debtor which means that they are not able to pay the real amount but they only pay debts. The payday loans companies are doing a business that is worth two billion pounds. If one pays it back on time things are absolutely fine. But if a person rolls over his repayment duration and the loan that he is taken has quite a high rate of interest that can be as high as 4000 percent, then that person is going to face a hell lot of a trouble.
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