Parents worried as children turn to payday loans
Four fifths (82%) of parents believe that young people do not understand the potential risks, while two thirds (67%) would be concerned or angry at discovering their child was a payday loan user, writes Ryan Bembridge.
One in 10 parents (13%) have had their fears confirmed by their adult child taking out one of the loans.
James Benamor, founder of Amigo Loans, said: “Our recent research highlighted how readily payday lenders are giving money to young people knowing they won’t be able to afford to pay it back the next month.
“So parents are quite right to be concerned. I hope the FCA succeed where the OFT failed- by actually enforcing the legislation that already exists to prevent this.”
“We will continue to lobby the FCA and government until they do.”
Over half of UK parents (52%) feel that young people don’t recognise the dangers of payday loans because of how easy they are to take out, while a third (30%) blame lenders themselves for playing down the risks.
More than a third (38%) believe that young people turn to payday loans to fund their social lives or lifestyle.