Loan industry needs ‘tighter regulation’

There should be greater regulation of the borrowing industry, a new study has revealed.

According to research by IVA.co.uk, 91 per cent of consumers believe mis-selling of secured loan and other forms of credit is commonplace.

IVA.co.uk spokesperson Andy Davie said: "There needs to be some sort of tightening of the lending criteria by banks and other financial institutions."

He claimed that it was too easy for borrowers to acquire a number of credit cards and build up high amounts of debt.

The study also indicated that 43 per cent believe that irresponsible lending is the main reason for Britain’s difficulties.

Meanwhile, a quarter of respondents claimed they would be willing to attend free debt management classes.

Research released by Credit Action reveals that consumers borrow £360 million everyday.

Secured lending accounts for £324 million, with some £36 million lent via unSecured Loans.

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