The payday loans market is full of poor practice, according to recent research conducted by Which?
The study found that although more people are taking up payday loans, the businesses involved are not adhering to certain financial regulations. PaydayKong.com, for example, was found to be operating without a valid Consumer Credit Licence, while Switfmoney.co.uk failed to show the APR for the loans anywhere on its website.
Meanwhile, dozens of unsolicited third party emails and phone calls were received by a researcher after his application to companies run by Casheuronet UK, in spite of assurances that the firm does not sell on details.
Richard Lloyd, executive director at Which?, urged consumers to treat payday loans as “an absolute last resort”.
He added: “A temporary overdraft extension can be a much cheaper, safer way to borrow so if you're struggling to get to pay day then the first thing you should do is talk to your bank.
"With increasingly squeezed household budgets, more people are taking out payday loans so it's vital that regulators keep a close eye on providers and deal firmly with any lenders breaking the rules."
