(L to R) Gillian Guy; Martin Lewis; Peter Tutton and Richard Lloyd
Media playback is unsupported on your device
Video

Payday loans: 'Role for them' or 'not fit for purpose'?

Consumer groups have been quizzed about payday lenders by members of the Business Select Committee.

Which? executive director Richard Lloyd told MPs he was, "not against people having access to short-term emergency loans that are provided on a basis of proper affordability checks and where the cost is absolutely clear and fair".

Gillian Guy, Chief Executive, Citizens Advice said she agreed but did not like people being "force-fed" with such loans, "when they should be directed towards debt advice".

However, Martin Lewis from Moneysavingexpert.com said he struggled to see any place in the market for payday loans and "they are not fit for the purpose they're used for".

  • 05 Nov 2013
Go to next video: Wonga: 'Perception customers are poor'