People with money problems seeking help from Citizens Advice Epsom and Ewell are turning to payday loans, credit cards and hire purchase despite the cap on payday loans introduced in January 2015.
The cap on interest rates and fees introduced by the Financial Conduct Authority has led to a 54% decrease in clients seeking our help with payday loans. However, people are accessing other forms of high cost credit which compound their debt problems.
Citizens Advice Epsom and Ewell’s local research shows that in our Borough one in ten clients with money problems uses high cost credit. Of those using high cost cred-it, one in ten has used more than one type of high cost credit, and more than half also has a credit card. This is just the tip of the iceberg with 522 local people last year seeking advice and support on 1,567 debt issues – 19% of all issues we see here.