The Money Advice Service commented on the FCA’s findings into logbook lenders
Caroline Siarkiewicz, head of UK Debt Advice at the Money Advice Service, said: “The FCA’s research sheds valuable new light on consumers’ attitudes toward and experience of the three markets it focuses on. We look forward to continue working closely with the FCA on taking forward the findings of this research, in particular building on what we have already done to help improve consumers’ awareness of the risks attached to payday and logbook loans.
“Despite being distressed, when people get debt advice they take action – so the distinction drawn in the research between advice and sales in the provision of commercial debt management is a crucial one for the FCA to focus on.
“Logbook loans and payday loans can compound financial difficulties in the long-term despite appearing to be appealing solutions in the short-term. Some people have no alternative but to use these forms of credit, however if people are feeling under financial stress they should seek free debt advice from a high-quality provider as early as possible. More than a million people a year already get free debt advice from Citizens Advice, StepChange and National Debtline and it works.
“If people want to understand their borrowing options they can contact the Money Advice Service for free and impartial advice. We also have great tools and guides to help people budget and cut back.”