Payday loan cap can't come soon enough

Responding to the Chancellors announcement today, Mathew Lawrence, IPPR Research Fellow, said:

"With over a million people expected to use costly pay day loans to pay for Christmas, this can't come soon enough. But to ensure credit is affordable for all, a cap on the cost of payday loans must also be accompanied by new alternative, cheaper and more sustainable ways of borrowing. To be effective, the cap itself must be inclusive of the total cost of a loan, to stop the lender passing it on in higher fees or hidden charges."

For more on IPPR's project on payday lending, see: http://ippr.org/research-project/44/10713/payday-loans