Credit industry crisis is ‘leaving families at mercy of loan sharks’

Commentary | 17/03/19

An “alarming” number of cash-strapped families are being forced to borrow from illegal loan sharks or friends and family, MPs will be told this week.

Greg Stevens, who runs the Consumer Credit Trade Association, is expected to accuse the Government of “trying to feed the five thousand with a cheese sandwich” after it introduced an “insufficient” no-interest scheme for those with problem debt last year.

He plans to tell politicians on Tuesday that tighter regulations and “rogue” claims companies are not only driving controversial payday lenders such as Wonga into collapse but also more conventional players.

Mr Stevens told The Sunday Telegraph that he expects the number of companies in the market to shrink by a further 10pc this year as under-pressure lenders consolidate or collapse.

Source: The Telegraph