27 Mar 2017 | Posted In Money advice news

The Lords Financial Exclusion Committee has published a report highlighting how regulation has been successful in battling abusive practices by payday loan companies but says that banks are failing the customers who need them the most, leaving the poorest to rely on expensive products.

It recommends that controls on “rent to own” products and other high cost credit deals must be introduced urgently to tackle the vicious cycle of debt and overcharging.

Debt charities are campaigning in response to the fact that as high cost loan companies have been pushed out, demand for credit by people in poverty has moved into other areas.

The government is urged to appoint a minister for financial inclusion who has to report annually to Parliament on progress made towards addressing financial exclusion.

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