Which? shines a light on the tricks that trap you in credit

Consumer champions Which? are calling for the new financial regulators to be tough on mainstream lenders who shower high fees and higher interest rates on people who get into difficulty with loans.

From 1 April, the new Financial Conduct Authority will be responsible for “requiring firms to put the well-being of their customers at the heart of how they run their business, promoting effective competition and ensuring that markets operate with integrity”.

Martyn Saville, Principal Researcher of the Which? Money Research Group, says that, while payday lenders are regularly criticised for their high interest loans, many mainstream lenders have products “designed to cash-in on people’s mistakes and desperation”. And he wants the new regulator to clamp down on these practices.

To read more of Martyn’s web post, go to http://conversation.which.co.uk/money/payday-loans-credit-cards-fees-charges-fca/