Following today’s publication of research by Payplan on behalf of the ITV Tonight programme, the Consumer Finance Association (CFA) – which represents the major payday lenders - has emphasised that responsible lending and transparent information is the key to ensuring consumers can manage their debts. John Lamidey, chief executive of the CFA, said: “Payplan’s research paints a pretty gloomy picture but it certainly doesn’t tell the whole story. On the contrary, recent independent research into credit use by low-income consumers shows that consumers will often choose payday over mainstream credit options as they can see that the short timescale for repayment is less high risk than an open-ended overdraft or revolving credit facility. “More than half (54 per cent) of payday loan users feel that their loans make it easier to pay bills on time. A similar proportion (56 per cent), say that using payday loans has prevented a one-off financial difficulty from becoming a wider financial crisis.

“The average payday loan debt is £273 not £500 as Payplan’s survey suggests and the fact that only a minority of customers refinance their payday loan and even then they only do it twice on average, shows that consumers use payday loans to smooth the peaks and troughs of their finances rather than relying on them month in, month-out, as many commentators would have you believe.”....Read more here--: CCR Magazine - Payday loans do not trap people in debt