Cash advance rollover plan is challenged by lenders

Payday loan providers are split over a strategy to restrict the amount of rollovers of short-term, high-interest loans, MPs be aware.

The town watchdog, the Financial Conduct Authority (FCA), has proposed a restriction of two extensions of payday advances if borrowers opted for to not repay.

Work of Fair Trading (OFT) has suggested this 1 rollover ended up being an indication that the debtor was at trouble.