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Payday Loan Statistics

Written By On 03/02/2014

According to the Competition Commission, more than one in three people who take out a payday loan do not pay it back on their agreed due date.

Their data suggests that one in every two applicants choose to rollover their loan or apply for another short term loan before repaying their primary one.

They researched fifteen million loans over an eighteen month period starting at the beginning of 2012. They say that a typical loan applicant is more probable to be a young male who does not own his own home. More often that not he would not be living in a particularly affluent area.

However, loan lenders disagree with the analysis as they state that the majority of their customers are a mix of both male and female ranging between early twenties and late thirties, many of whom hold down employment in the professional sector.

The lenders insist that their average accepted applicant are in the position of paying back approximately £40 for a £150 short term loan advance very affordable.

A spokesperson for the commission said,

Repeat use of payday loans, either through rolling over a loan or taking out a further loan is prevalent.

The report also claimed that even though many lenders are in operation, the payday sector is mainly dominated by only three names.

The most well publicised firm in the UK is Wonga which has come under continual criticism from politicians and others alike. The other two however are USA based.

The first is CashEuroNet, subsidised by Cash America. The American company uses three UK brands that is more well known in Britain. They are QuickQuid, Pounds to Pocket and Flexcredit.

The other is called Dollar Financial and is the company that backs The Money Shop, Payday Express and Payday UK.