0:00:02 > 0:00:04In a Britain that's broke they seem the perfect solution...
0:00:04 > 0:00:07Who's going to say no to getting cash in your hand?
0:00:07 > 0:00:10Millions of people have taken out a payday loan.
0:00:10 > 0:00:13Whether they're struggling to survive...
0:00:16 > 0:00:18..or just want a good night out.
0:00:18 > 0:00:19How many payday loans have you had?
0:00:19 > 0:00:21- 15 to 20.- Wow.
0:00:21 > 0:00:26My mum says to me, like, I'm the best-living student in the world.
0:00:26 > 0:00:29But have payday loans made it too easy to get hold of money?
0:00:29 > 0:00:32If I see clothes that I want and I don't get paid for two days,
0:00:32 > 0:00:35I won't wait. I'll want them straightaway.
0:00:35 > 0:00:38Now the Government's cracking down on an industry
0:00:38 > 0:00:40accused of charging sky-high interest rates
0:00:40 > 0:00:42and causing spiralling debt.
0:00:42 > 0:00:45I felt like ending it, it was so bad.
0:00:45 > 0:00:46And it was because of all the debt.
0:00:46 > 0:00:48I'm going to start crying.
0:00:51 > 0:00:52I'm Miquita Oliver,
0:00:52 > 0:00:55and I know what it's like to have debt hanging over you.
0:00:57 > 0:00:59For ten years I was the face of music television,
0:00:59 > 0:01:03but recently I'm known for something completely different.
0:01:03 > 0:01:05If you Google my name, Miquita Oliver,
0:01:05 > 0:01:09first thing that comes up, "Twitter," and then "bankrupt".
0:01:09 > 0:01:12At 17 I was earning money I didn't know how to handle,
0:01:12 > 0:01:15and before I knew it, I owed thousands to the taxman.
0:01:15 > 0:01:18I just felt like I couldn't breathe and that I was sinking.
0:01:18 > 0:01:23I was so scared about my future, and I didn't tell anyone for two years.
0:01:23 > 0:01:27I want to find out the real truth behind the multimillion pound
0:01:27 > 0:01:29payday loan industry.
0:01:29 > 0:01:32To do it, I'll open my own payday loan shop...
0:01:32 > 0:01:37So it's an interest rate of 3605.35%
0:01:39 > 0:01:40Will you just sit down and have a talk
0:01:40 > 0:01:42about why you came in today for the loan?
0:01:44 > 0:01:46To get some COKE?!
0:01:46 > 0:01:50..and go undercover to find out how many companies stick to the rules.
0:01:55 > 0:01:56None of your business?
0:01:56 > 0:01:58I'll meet people who love them...
0:01:58 > 0:02:00That's how easy it is to do.
0:02:00 > 0:02:01..worked for them...
0:02:01 > 0:02:06The idea that I was earning money from this, it was horrible.
0:02:07 > 0:02:10..and people who will never forgive them.
0:02:10 > 0:02:12Me mate rang me and he said...
0:02:12 > 0:02:15He just said, "Kenny's killed himself."
0:02:29 > 0:02:33Among the empty stores and big name closures on Britain's high streets,
0:02:33 > 0:02:35one type of business is booming.
0:02:37 > 0:02:40Shops offering payday loans are everywhere,
0:02:40 > 0:02:44creating an industry worth more than £2 billion.
0:02:44 > 0:02:48This street in Rochdale has six of them, and at one time had nine.
0:02:48 > 0:02:52Josh has been using them to get cash ever since he was old enough.
0:02:52 > 0:02:55Usually you look forward to 18, you're free, you can go out
0:02:55 > 0:02:56and get served.
0:02:56 > 0:02:59It's not like, "You can get a payday loan now."
0:02:59 > 0:03:04That many people are doing it now it's like a fashion, if you will.
0:03:04 > 0:03:0720-year-old Josh is young, British and broke,
0:03:07 > 0:03:10and payday loans have seemed the answer.
0:03:10 > 0:03:12All I honestly see is that "£1,000 in your hand",
0:03:12 > 0:03:16I don't see this "1.99% per month."
0:03:17 > 0:03:21- What the- BLEEP- is an APR to an 18-year-old?
0:03:21 > 0:03:23In the two years he's been taking them out,
0:03:23 > 0:03:25he's got to know this high street well.
0:03:25 > 0:03:28I've had about eight or nine payday loans all together.
0:03:28 > 0:03:30I've had hundreds and hundreds of pounds off them.
0:03:30 > 0:03:33I've had one from there, one from there,
0:03:33 > 0:03:36I've had one from there, and I've had one from down at the bottom.
0:03:36 > 0:03:40The cheque centre, there, as well, I got one off them.
0:03:40 > 0:03:44Everywhere on this street, basically, I've had one from.
0:03:44 > 0:03:47Getting a loan, it's... The feeling's good, obviously,
0:03:47 > 0:03:50you've got money in your pocket, and who's going to say no to that?
0:03:50 > 0:03:53Who's going to say no to getting cash in your hand?
0:03:53 > 0:03:55You just think dollar signs, do you know what I mean?
0:03:55 > 0:03:59Get 100 quid, go out on a weekend,
0:03:59 > 0:04:00nice little bit of pocket money.
0:04:02 > 0:04:03Josh is unemployed,
0:04:03 > 0:04:06but he knows all the tricks to make sure that doesn't stop him
0:04:06 > 0:04:08getting as many payday loans as possible.
0:04:08 > 0:04:10When you go in they ask for a bank statement,
0:04:10 > 0:04:12obviously they look for these regular payments,
0:04:12 > 0:04:15you get your mates to put in money through BACS or whatever.
0:04:15 > 0:04:18Give them a bit of the money for going through the trouble.
0:04:18 > 0:04:20If they ring, you just give them your mate's number,
0:04:20 > 0:04:24obviously your mates answer, pretend that he's your boss or whatever
0:04:24 > 0:04:26and put in false information.
0:04:26 > 0:04:29Simple things like putting your name in capitals, the address,
0:04:29 > 0:04:32you can put... Blag the address, empty addresses.
0:04:32 > 0:04:35But if they had a mind about them, obviously, looking at me,
0:04:35 > 0:04:37I weren't going to pay it back.
0:04:44 > 0:04:46'Josh has been out of work for two years,
0:04:46 > 0:04:49'and with Rochdale hit hard by the economic downturn...'
0:04:49 > 0:04:51Hi! You all right? I'm Miquita.
0:04:51 > 0:04:54'..he says his friends are in the same boat'
0:04:58 > 0:05:02Would you say that quite a high majority of people here
0:05:02 > 0:05:05under 25 probably had a payday loan?
0:05:05 > 0:05:08- Yeah, yeah I'd say about 80, 85%.- 85%?!
0:05:08 > 0:05:13Yeah, definitely, easy. Even my mum's had one, it's just normal.
0:05:13 > 0:05:17The way things are these days, it's just the easiest way out.
0:05:17 > 0:05:20This part of England is classed as poverty,
0:05:20 > 0:05:25the worst for benefits. Everyone's basically messed up round here.
0:05:25 > 0:05:26It is a bad place.
0:05:30 > 0:05:33But Rochdale's no different to other parts of the country,
0:05:33 > 0:05:35where youth unemployment has rocketed
0:05:35 > 0:05:39and young people are struggling with money or to find work.
0:05:39 > 0:05:42So the quick fix of a payday loan can be easy to get
0:05:42 > 0:05:44and hard to resist.
0:05:45 > 0:05:47Josh didn't think about the downsides,
0:05:47 > 0:05:51but after years of borrowing he's up to his neck in debt.
0:05:51 > 0:05:54Now I owe six, seven grand.
0:05:54 > 0:05:58Probably 20% that I borrowed and there were 80% interest.
0:05:58 > 0:06:01- So it's like just over a grand that you borrowed?- Yeah.
0:06:01 > 0:06:03And now it's six grand to pay back?
0:06:03 > 0:06:06I mean, that just feels completely unrealistic.
0:06:06 > 0:06:09Exactly. How do you expect a 20-year-old to pay that amount of money back?
0:06:09 > 0:06:11And it's going to take over 11 to 12 years for me
0:06:11 > 0:06:13to pay off all these loans.
0:06:13 > 0:06:1512 years?!
0:06:15 > 0:06:17That's what they've estimated it at.
0:06:17 > 0:06:19Josh, what responsibility do you take?
0:06:19 > 0:06:22If I could turn back time I would never, ever, ever
0:06:22 > 0:06:25step foot in a payday... I wouldn't go online for a payday loan,
0:06:25 > 0:06:28I wouldn't do anything like that again.
0:06:28 > 0:06:30- Just feels like a huge, huge mistake?- Yeah.
0:06:30 > 0:06:33It's a regret that I'll live with now for the next 12 year.
0:06:38 > 0:06:41Though I've never been in the same situation as Josh, I do understand
0:06:41 > 0:06:45exactly what it's like to have serious money problems.
0:06:45 > 0:06:48When I was declared bankrupt it felt like I was in a financial mess
0:06:48 > 0:06:50I would never get out of.
0:06:50 > 0:06:54The circumstances were different, but I totally get that it
0:06:54 > 0:06:56isn't always easy managing your money.
0:06:56 > 0:06:59When you're desperate and can't see anywhere to turn,
0:06:59 > 0:07:02payday loans can seem the perfect solution.
0:07:02 > 0:07:05Two million people are said to use them in the UK, borrowing
0:07:05 > 0:07:09from hundreds of different lenders on the high street and online,
0:07:09 > 0:07:12thanks to TV ads that make everything seem so simple.
0:07:12 > 0:07:16You tell us how much you want, how long you want it for,
0:07:16 > 0:07:19and we tell you how much it's going to cost.
0:07:19 > 0:07:23Payday loans are supposed to be a quick way of borrowing
0:07:23 > 0:07:25a small amount to tide you over until your next payday.
0:07:28 > 0:07:32But everyone from the Government to the Archbishop of Canterbury
0:07:32 > 0:07:35has taken a pop at them, saying they're not always lent responsibly
0:07:35 > 0:07:40or to people who can afford to pay them back on time.
0:07:40 > 0:07:43Instead, it's usually the speed of getting a loan
0:07:43 > 0:07:45that the companies focus on.
0:07:45 > 0:07:48It's easy money, in your hands as fast as you want it -
0:07:48 > 0:07:52very attractive if your money's not stretching as far as it used to.
0:07:52 > 0:07:56And that's a message some lenders have used familiar faces to get across.
0:07:56 > 0:07:59We've all had money troubles at some point - I know I have -
0:07:59 > 0:08:03but is there an easier way to get a loan?
0:08:03 > 0:08:07Check out cashlady.co.uk. With Cash Lady it's simple to apply...
0:08:07 > 0:08:11I actually have a real soft spot for Kerry Katona.
0:08:11 > 0:08:14I think when I went bankrupt I sort of did a mental list of people in
0:08:14 > 0:08:18my head that had also gone bankrupt, and she came into my head.
0:08:18 > 0:08:20I sort of felt like a weird bond with her through it,
0:08:20 > 0:08:25but why would she or I be people to ever talk to
0:08:25 > 0:08:29about looking after your money? Like, it just doesn't make any sense.
0:08:29 > 0:08:32This is a person that has been, obviously, very irresponsible
0:08:32 > 0:08:34with their money and they've chosen her as the face of,
0:08:34 > 0:08:37"Hey, this is where you should come to get money."
0:08:40 > 0:08:44This Cash Lady ad was banned after complaints it encouraged
0:08:44 > 0:08:48young people with financial problems to see payday loans as the way out.
0:08:48 > 0:08:51And, soon afterwards, the company dropped Kerry
0:08:51 > 0:08:53when she was declared bankrupt a second time.
0:08:53 > 0:08:56Other lenders have been forced to change their ads because they
0:08:56 > 0:09:01didn't make clear a crucial detail - how much the loan will cost.
0:09:01 > 0:09:03Too many bills this month? Do what I did.
0:09:05 > 0:09:09Visit quickquid.co.uk/tv and get the money you need today.
0:09:09 > 0:09:11I would not have got how much the loan was going to cost me
0:09:11 > 0:09:12from that advert.
0:09:12 > 0:09:15Where on earth in the whole thing, apart from this tiny, tiny
0:09:15 > 0:09:17APR, which is literally about this big,
0:09:17 > 0:09:19which no-one really understands anyway?
0:09:19 > 0:09:23And you can see why it's not something they want to shout about,
0:09:23 > 0:09:27because the interest rate charged - the APR - can typically be
0:09:27 > 0:09:33anything between 1,000% and a staggering 5,853%,
0:09:33 > 0:09:37compared to around 20% you'd usually pay on a credit card.
0:09:37 > 0:09:40With big numbers like that, what I can't get my head round is
0:09:40 > 0:09:42why it doesn't seem to be putting people off.
0:09:42 > 0:09:45In fact, despite all the criticism,
0:09:45 > 0:09:48as a nation, we can't seem to get enough of them.
0:09:48 > 0:09:50Some people take out loan after loan
0:09:50 > 0:09:52to finance a lifestyle they can't afford.
0:09:52 > 0:09:55OK, so will there be people there at half ten?
0:09:55 > 0:09:58Right, well, we're coming at half ten, OK?
0:09:58 > 0:10:01Orlagh and her friends are at Liverpool University,
0:10:01 > 0:10:04but they don't let student poverty get in the way of a good night out.
0:10:04 > 0:10:07When we usually go on a bar crawl we would come here,
0:10:07 > 0:10:11we'd go to Salt Dogs here, Santa Chupitos and then spend like £60
0:10:11 > 0:10:14on shots and stuff, and then the casino.
0:10:14 > 0:10:18Casino?! I mean, who's got money for a casino?
0:10:18 > 0:10:22My mum says to me, like, I'm the best-living student in the world.
0:10:29 > 0:10:32How many payday loans have you had?
0:10:32 > 0:10:3515 to 20, that's about one every month, that's sounding like.
0:10:35 > 0:10:38Every time, they are about 300, 200.
0:10:38 > 0:10:41Have you ever been there when she's gone out to use the phone
0:10:41 > 0:10:44and then come back £100 richer?
0:10:44 > 0:10:47- Yes, in my flat.- Yeah, I did it in Laura's flat, it's fine.
0:10:47 > 0:10:49She was like, "I'm so skint, I'm so skint.
0:10:49 > 0:10:52"It's fine, I've got a Wonga, we're going out."
0:10:52 > 0:10:53THEY LAUGH
0:10:55 > 0:10:56I think they're great.
0:10:56 > 0:10:58Why don't you just not have the night out?
0:10:58 > 0:11:02I mean, I know exactly how you feel but why not stay in?
0:11:02 > 0:11:04I'm a student now, I can go out when I want, do what I want,
0:11:04 > 0:11:07I don't live at home, everyone is single and fun.
0:11:07 > 0:11:11I honestly think they help because... Especially when you know you've got
0:11:11 > 0:11:14a student loan coming in, you know the exact date you get your money,
0:11:14 > 0:11:18you're going to have £1,600 and you need £300, do you know what I mean?
0:11:18 > 0:11:21You know you're going to pay it back, it's fine, and it's so easy to do.
0:11:24 > 0:11:27I always use the app, it's a slider. So, "Welcome back..."
0:11:27 > 0:11:30- Oh, "Welcome back, Orlagh." - "Welcome back, Orlagh."
0:11:30 > 0:11:32- It makes you feel quite, like... - Yeah.
0:11:32 > 0:11:34..cosy, like, "Hey, we missed you!"
0:11:34 > 0:11:37So, look, "How much cash do you want?
0:11:37 > 0:11:39"We can send you £200 within five minutes of approval."
0:11:39 > 0:11:41Let's try £200.
0:11:41 > 0:11:45So if I go for 21 days I pay back £250.
0:11:45 > 0:11:46So £50 quid interest.
0:11:46 > 0:11:49To get £200 for three weeks, £50 interest is not that much.
0:11:49 > 0:11:52Oh, because I'm a good customer, my money is there quicker.
0:11:52 > 0:11:55So If I wanted that right now, we could go back inside
0:11:55 > 0:11:58- and I could go to the cash machine and it would be there.- £200.
0:11:58 > 0:12:00£200, just like that.
0:12:00 > 0:12:05I think that, if you need one, it's a good reason, why not?
0:12:08 > 0:12:12I don't think I could ever see it as a positive thing, ever,
0:12:12 > 0:12:16but I do...I do kind of understand what she means by
0:12:16 > 0:12:19if you want to have a nice night out and there is a way to have a
0:12:19 > 0:12:22bit more money and there is an app on your phone?
0:12:22 > 0:12:25I mean, I probably... I'd probably use it.
0:12:25 > 0:12:28Orlagh's app gets her money from the best known name
0:12:28 > 0:12:31in the payday business, Wonga.
0:12:31 > 0:12:36The company sponsors football clubs, TV shows, they're on Facebook.
0:12:36 > 0:12:40There's rarely a day goes by when I don't see their logo.
0:12:40 > 0:12:44And last year, from lending online, their profits rocketed to
0:12:44 > 0:12:47£84.5 million.
0:12:47 > 0:12:49That's a LOT of Wonga.
0:12:56 > 0:13:00And one person that's still paying some of that is Ste.
0:13:00 > 0:13:03- I'm Miquita.- Hi, I'm Ste.- Nice to meet you.
0:13:03 > 0:13:07His attitude's always been, "Why go without when you can get cash
0:13:07 > 0:13:10"and party from the Bank of Payday Loans?"
0:13:10 > 0:13:12I think with me, personally, it's
0:13:12 > 0:13:15if I want to buy something I want to buy it there and then.
0:13:15 > 0:13:17You know, if I see clothes that I want
0:13:17 > 0:13:20and I don't get paid for two days, I won't wait.
0:13:20 > 0:13:22I'll just go... I want them straightaway.
0:13:22 > 0:13:23This isn't money to pay rent,
0:13:23 > 0:13:28- this is money to party and buy clothes?- Yeah.
0:13:28 > 0:13:32When you're skint and you go into a clothes shop,
0:13:32 > 0:13:34you see about 20 T-shirts and jeans that you want,
0:13:34 > 0:13:39and that money is available in ten minutes for you to buy them.
0:13:39 > 0:13:40So it lets you live a bit differently,
0:13:40 > 0:13:42even if it's just for the evening?
0:13:42 > 0:13:44Yeah. If I'm going to the cinema
0:13:44 > 0:13:48and I can get a payday loan, I wouldn't just go standard.
0:13:48 > 0:13:51I would go premier and get the full package and stuff like that.
0:13:51 > 0:13:56It lets you, you know, treat yourself.
0:13:57 > 0:13:59But no-one can treat themselves forever,
0:13:59 > 0:14:02and Ste's borrowing has now caught up with him.
0:14:02 > 0:14:05How much debt are you in now?
0:14:05 > 0:14:07About three grand, £3,000.
0:14:07 > 0:14:11If I'm honest, you don't seem as worried as I would think
0:14:11 > 0:14:13you should be.
0:14:13 > 0:14:16I mean, I was terrified every day for about a year.
0:14:16 > 0:14:19It's when it's two days before you get paid, you get your wage slip
0:14:19 > 0:14:22and you look at how much you're getting
0:14:22 > 0:14:27and then you're writing down how much you owe out in payday loans,
0:14:27 > 0:14:30and that's when you get that sick feeling.
0:14:30 > 0:14:33And then the thing is, because you're nervous and worried,
0:14:33 > 0:14:35and you need, like, a cigarette or a drink,
0:14:35 > 0:14:38then you're borrowing more to calm yourself down, you know?
0:14:38 > 0:14:40Worrying what you're going to do.
0:14:43 > 0:14:46Ste's inability to control his spending is his own fault,
0:14:46 > 0:14:50but do payday lenders make it too easy for people like him to keep
0:14:50 > 0:14:52on borrowing more,
0:14:52 > 0:14:56and even take out multiple loans at the same time?
0:14:56 > 0:14:59He's got nine of them already, and a history of defaulting.
0:14:59 > 0:15:02'But he's convinced he can easily get more.'
0:15:02 > 0:15:05Get up to 1,500 quid in four minutes.
0:15:05 > 0:15:08'And he's going to show me how.'
0:15:08 > 0:15:10This is Cash Lady.
0:15:10 > 0:15:13Is that meant to be Kerry Katona?
0:15:13 > 0:15:14"Warning, suspicious site."
0:15:14 > 0:15:16Even the computer thinks this is a bad idea!
0:15:16 > 0:15:17THEY LAUGH
0:15:20 > 0:15:23You just click the loan amount that you want. Next payment date.
0:15:23 > 0:15:25- You've asked for 50, right?- Yes.
0:15:25 > 0:15:28And now we've told them your information, they're saying,
0:15:28 > 0:15:30"You sure you don't want to make it 100?"
0:15:30 > 0:15:32So, before you've even got your first loan,
0:15:32 > 0:15:35they're already seeing if you want to double it?
0:15:35 > 0:15:37- Yeah. See, that's what I mean. That's what they all do.- Right.
0:15:39 > 0:15:42That's all done. Now it's just waiting for an e-mail to confirm it's
0:15:42 > 0:15:44been approved and when it's going to be in your bank account.
0:15:44 > 0:15:46PHONE BEEPS
0:15:46 > 0:15:49"Your money has been processed and your money should be
0:15:49 > 0:15:52"in your account today between 3:30 and half 5:30."
0:15:52 > 0:15:55- I'm actually quite amazed how easy that was.- Yeah.
0:15:58 > 0:16:00- PHONE:- "Your loan amount of £50
0:16:00 > 0:16:02"will be transferred to your account
0:16:02 > 0:16:03"within a few minutes."
0:16:03 > 0:16:07'In fact, with no bother at all, Ste's able to get four separate
0:16:07 > 0:16:10'loans all against one payday.'
0:16:10 > 0:16:11Over the space of about 15 minutes,
0:16:11 > 0:16:15we've managed to get, what, 350 quid in your account?
0:16:15 > 0:16:17350, yeah.
0:16:17 > 0:16:19And without any of them asking
0:16:19 > 0:16:21whether you had loans out with anyone else.
0:16:21 > 0:16:25No, nothing. That's how easy it is to do.
0:16:25 > 0:16:26It feels a bit addictive.
0:16:26 > 0:16:30It feels like you could sit here all afternoon, just doing them.
0:16:33 > 0:16:37'When it's that simple, I can see how Ste might be tempted to
0:16:37 > 0:16:41'borrow first and worry about the consequences later.'
0:16:44 > 0:16:49'But if, for Ste, payday loans have become almost an addiction,
0:16:49 > 0:16:53'for 23-year-old Lauren Jennings they were a dirty little secret.
0:16:53 > 0:16:57'A graduate with dreams of carrying on her studies, she borrowed
0:16:57 > 0:17:00'money with huge interest rates, telling no-one
0:17:00 > 0:17:03'until it all went wrong and her mum discovered the truth.'
0:17:04 > 0:17:09Theresa, when did you realise that Lauren had taken out a payday loan?
0:17:09 > 0:17:11Did you even know what that was?
0:17:11 > 0:17:14I remember Lauren and I having a conversation about,
0:17:14 > 0:17:17"My God, look at the interest rate on that!"
0:17:17 > 0:17:19And "How would you be stupid enough to take one of those out?"
0:17:19 > 0:17:21- Really?- Yeah.
0:17:21 > 0:17:24At the time, she hadn't already taken one?
0:17:24 > 0:17:25I don't actually know,
0:17:25 > 0:17:28because the first thing I did know
0:17:28 > 0:17:30was that I found a piece of paper...
0:17:30 > 0:17:31Cos she's not very good at covering up.
0:17:31 > 0:17:33She will leave stuff laying around.
0:17:33 > 0:17:35I just confronted her with it immediately,
0:17:35 > 0:17:37and she just promised me it was a one-off, she wouldn't be
0:17:37 > 0:17:42stupid enough - her words - to go down that track again.
0:17:42 > 0:17:44And I believed her.
0:17:51 > 0:17:53It turned out that she'd borrowed
0:17:53 > 0:17:57£200 in March of last year
0:17:57 > 0:18:01and, by May - they've sent us these letters -
0:18:01 > 0:18:03were all saying she owed £703.
0:18:03 > 0:18:07So, in two months it went up that much?
0:18:07 > 0:18:10Well, and when my husband phoned - he had to settle it -
0:18:10 > 0:18:14it had gone up again, because of how long it had taken in the post.
0:18:14 > 0:18:16It was £1,000, we settled.
0:18:16 > 0:18:24And the rate of interest is 27,272% APR.
0:18:24 > 0:18:30'27,272% APR is the highest interest rate I've ever heard.
0:18:30 > 0:18:32'No wonder Speed Credit -
0:18:32 > 0:18:35'one of the companies that Lauren borrowed from -
0:18:35 > 0:18:36'is no longer in business.'
0:18:36 > 0:18:41I mean, I stood here absolutely shaking with
0:18:41 > 0:18:44rage at my daughter, really.
0:18:44 > 0:18:47So, so angry.
0:18:48 > 0:18:51- Hi, Lauren.- Hi!- Hi, Lauren.
0:18:51 > 0:18:54Feels weird, cos we've just been talking about you!
0:18:54 > 0:18:55Nice to meet you.
0:18:55 > 0:18:58I was just saying it was a bit strained, wasn't it?
0:18:58 > 0:19:01It was a little bit.
0:19:01 > 0:19:02The remnants of payday loans
0:19:02 > 0:19:05are still sort of hanging over the house?
0:19:05 > 0:19:07Yeah. Oh, yeah.
0:19:07 > 0:19:09I don't think I realised the seriousness of it
0:19:09 > 0:19:11until my mum found out, then it was like
0:19:11 > 0:19:13lump of bricks on my head.
0:19:13 > 0:19:14That's what I think.
0:19:14 > 0:19:17I don't think you realised that it was ever going to catch up with you.
0:19:17 > 0:19:20- The first one that I discovered... - Yeah, that was the first one.
0:19:20 > 0:19:22Yeah, and you promised me
0:19:22 > 0:19:24that that would be a one-off
0:19:24 > 0:19:25and that you would never do it again.
0:19:25 > 0:19:27And you lied.
0:19:27 > 0:19:30It's the disappointed, that's the thing that gets you.
0:19:30 > 0:19:32When they're disappointed, not angry.
0:19:32 > 0:19:34Like, just shout at me.
0:19:34 > 0:19:36Your dad paid off that £1,000.
0:19:36 > 0:19:39You've not even thought about paying him back that money, so...
0:19:39 > 0:19:40I'm not in a position...
0:19:40 > 0:19:43Well, I know. But, had that not been your father
0:19:43 > 0:19:46and had that been that company,
0:19:46 > 0:19:47what would you have done then?
0:19:47 > 0:19:50What would you have done, if your parents weren't here
0:19:50 > 0:19:51to help you with that first debt?
0:19:51 > 0:19:53Become a prostitute.
0:19:53 > 0:19:56- No, I'm not going to become a prostitute!- Good!
0:19:56 > 0:19:57SHE LAUGHS
0:19:57 > 0:20:01Why do you think you did go get more payday loans
0:20:01 > 0:20:03after your parents had bailed you out?
0:20:03 > 0:20:06I wasn't thinking. I just...
0:20:06 > 0:20:08All it is, is you think
0:20:08 > 0:20:10"Oh, I've got money in my bank in half an hour."
0:20:10 > 0:20:12People get into trouble with these companies
0:20:12 > 0:20:15because it's just too easy. It's too easy to get money.
0:20:15 > 0:20:17You can walk off the street and get money off them.
0:20:17 > 0:20:2015 minutes and it can be in your bank.
0:20:20 > 0:20:22Do you feel like she's learnt her lesson?
0:20:22 > 0:20:23Hmmm... Don't know.
0:20:23 > 0:20:25Might have to have a conversation with her
0:20:25 > 0:20:27later about something else I found today.
0:20:27 > 0:20:30I have learnt my lesson, no matter what you think.
0:20:30 > 0:20:34I know you will never believe me ever again, whatever I say,
0:20:34 > 0:20:36which is really irritating.
0:20:36 > 0:20:38But there you go.
0:20:40 > 0:20:43'I can understand how mortified Lauren must have been
0:20:43 > 0:20:46'when her mum found out what she owed.
0:20:48 > 0:20:51'I've never properly spoken to my mum about my debts,
0:20:51 > 0:20:55'and maybe it's about time I did.'
0:20:55 > 0:20:57- Hi, Mum.- Hi!
0:21:00 > 0:21:02It started to happen...
0:21:02 > 0:21:05I sort of knew it was happening, because you got quite
0:21:05 > 0:21:09defensive about... If I would be like "What you doing?"
0:21:09 > 0:21:11Or even trying to talk to you about it, you got quite, slightly...
0:21:11 > 0:21:13Not slightly. Very narky.
0:21:13 > 0:21:15So, I worked it out.
0:21:15 > 0:21:17What happened is I went bankrupt
0:21:17 > 0:21:20but then I didn't tell anyone.
0:21:20 > 0:21:22I had a drawer that I hadn't opened
0:21:22 > 0:21:24that was just like this of bankruptcy letters.
0:21:24 > 0:21:27I remember I took all the letters, put them on that balcony
0:21:27 > 0:21:28and just set alight to them.
0:21:28 > 0:21:32- Did you?- Like an actual crazy person.
0:21:32 > 0:21:35- Did you?- I was just like, "This isn't happening at all.
0:21:35 > 0:21:38"Just do that." Because I thought I'd gone through it and no-one knew
0:21:38 > 0:21:41- and no-one was going to know. - And you'd be able to...
0:21:41 > 0:21:43And I'd just be able to get back on my feet.
0:21:43 > 0:21:46Obviously, when it came out in the papers, that's when I was more
0:21:46 > 0:21:49upset for Mum, because I felt really bad
0:21:49 > 0:21:52that it was like really public.
0:21:52 > 0:21:55And I felt like that must have been a really horrible
0:21:55 > 0:21:58thing to have your daughter in the papers making such a big mistake.
0:21:58 > 0:22:01That wasn't the hardest bit for me. I was just worried about you.
0:22:01 > 0:22:03I just want to know you're all right
0:22:03 > 0:22:06and just to make sure that it was a situation...
0:22:06 > 0:22:08- That I learnt from. - That you learnt from, exactly.
0:22:08 > 0:22:10My mum calls it "The Humbling".
0:22:10 > 0:22:12And it was humbling, because it's true,
0:22:12 > 0:22:14it drags you down to ground zero
0:22:14 > 0:22:17and makes you look at everything.
0:22:17 > 0:22:18You have to look at yourself.
0:22:23 > 0:22:26'Debt is affecting more young people than ever before.
0:22:27 > 0:22:31'It's one reason why it's said under 25s are three times
0:22:31 > 0:22:33'more likely to take out a payday loan.
0:22:33 > 0:22:36'But I want to find out more about what's making them do it.
0:22:36 > 0:22:40'To find out, I've gone back to Rochdale,
0:22:40 > 0:22:45'a town with already plenty of payday loan stores.
0:22:45 > 0:22:47'But we're opening up another one.'
0:22:50 > 0:22:53'We've taken over this empty shop, made it look like we're
0:22:53 > 0:22:55'in the business of lending money,
0:22:55 > 0:22:57'and rigged it with hidden cameras.'
0:22:57 > 0:23:00OK, can you see that cable?
0:23:00 > 0:23:01No, can't see that at all.
0:23:01 > 0:23:06'We're open for two days and don't really have any loans to offer.
0:23:06 > 0:23:09'But we're hoping people looking for some fast cash will
0:23:09 > 0:23:11'call in to tell us why,
0:23:11 > 0:23:15'so we can see how much they know about what they're getting into.'
0:23:17 > 0:23:21'I'm tucked away upstairs out of sight, along with some
0:23:21 > 0:23:23'financial experts we've got on hand to give advice.
0:23:23 > 0:23:27'And it's not long before our first potential customers come in.'
0:23:27 > 0:23:28- Hello.- You're a new one.
0:23:48 > 0:23:52Like all responsible lenders should,
0:23:52 > 0:23:54we're going to be upfront about our interest rates.
0:23:57 > 0:24:01'Our rate is an average of what you'd pay the best-known lenders.'
0:24:17 > 0:24:19'But before anyone gets too keen...' Hi!
0:24:19 > 0:24:23'..it's time to come clean... Hi, I'm Miquita.
0:24:23 > 0:24:25'..about exactly who we really are.'
0:24:25 > 0:24:26I don't want to shock you.
0:24:26 > 0:24:29We're not actually a payday loan company.
0:24:29 > 0:24:31What do you usually get your loans out for?
0:24:31 > 0:24:34My work has reduced all my hours down,
0:24:34 > 0:24:37so now I can't afford to get shopping and basic stuff.
0:24:37 > 0:24:41I've got two little boys. I constantly worry about money.
0:24:41 > 0:24:44There's no other ways. You've got to get payday loans to survive.
0:24:44 > 0:24:47It's the easiest way, innit?
0:24:48 > 0:24:50But it's not that easy
0:24:50 > 0:24:53if the interest rates spiral out of control.
0:24:53 > 0:24:55And here's how that can happen.
0:24:55 > 0:24:58Take out a loan and pay it back on time and you'll usually only pay
0:24:58 > 0:25:01something like an extra £25 interest
0:25:01 > 0:25:04on top of every £100 you borrow.
0:25:04 > 0:25:08But if you go over the deadline, as up to a third of people do,
0:25:08 > 0:25:11that's when those high interest rates can kick in
0:25:11 > 0:25:14and what you owe will grow at a frightening speed.
0:25:14 > 0:25:18You could end up paying HUGE amounts back.
0:25:21 > 0:25:24'I want to test how much our customers really
0:25:24 > 0:25:25'understand about APR.
0:25:25 > 0:25:27'And I've got the perfect way to do it.'
0:25:27 > 0:25:30Do you guys know anything about APR?
0:25:30 > 0:25:32- Interest charges.- Yeah.
0:25:32 > 0:25:36So we've done sort of a payday loan app.
0:25:36 > 0:25:39I mean this thing's brilliant, cos you can really see visually
0:25:39 > 0:25:41just how scary it gets so quickly,
0:25:41 > 0:25:43just because of the type of APR that payday loans have.
0:25:43 > 0:25:45So you were going to borrow 100.
0:25:45 > 0:25:47By the time you got to seven months,
0:25:47 > 0:25:49you'd be paying something like £822.
0:25:49 > 0:25:51And then, if you let it go to a year,
0:25:51 > 0:25:52over five and a half grand.
0:25:52 > 0:25:55- I didn't know it could go up to that much money.- Yeah.
0:25:55 > 0:25:58Would this experience today put you off maybe getting
0:25:58 > 0:26:00- a payday loan in the future? - Yeah. Yeah.
0:26:00 > 0:26:02Never doing it again.
0:26:03 > 0:26:06'If the reasons for wanting a loan
0:26:06 > 0:26:08'could be a little unexpected...'
0:26:08 > 0:26:10What did you need the loan for today?
0:26:10 > 0:26:11Holidays and stuff.
0:26:11 > 0:26:12Mainly for the house.
0:26:18 > 0:26:21We'll just talk about why you came in today for the loan?
0:26:23 > 0:26:25To get some coke?!
0:26:27 > 0:26:30'..I was also struck by how many people hoping to get one
0:26:30 > 0:26:31'don't even have a payday.'
0:26:42 > 0:26:45'But it was clear some of them, like Dean,
0:26:45 > 0:26:47'had a desperate need for cash.'
0:26:58 > 0:27:02How bad has it got today towards money?
0:27:02 > 0:27:03Haven't got no money at all. So that's why.
0:27:03 > 0:27:06We've asked all the family members and stuff like that,
0:27:06 > 0:27:07but they're in the same boat.
0:27:07 > 0:27:10They haven't got no money, so that's why we came here today
0:27:10 > 0:27:12to see if we could get any money so we can put gas and electric on
0:27:12 > 0:27:16and some food and that, just to get us through.
0:27:16 > 0:27:19So did you leave the house today looking for a payday loan company?
0:27:19 > 0:27:22Yeah. You have to do anything to get money these days, don't you?
0:27:22 > 0:27:24You have to try.
0:27:24 > 0:27:26I like being independent, but there's times
0:27:26 > 0:27:28where you have to ask people for help. But I don't really like it.
0:27:28 > 0:27:32I'd rather try and do it myself. It makes you feel small.
0:27:32 > 0:27:34- How old are you?- Me, I'm 21.
0:27:35 > 0:27:38And you guys don't have anyone else that will help you with money?
0:27:38 > 0:27:42No. My dad just died four months ago.
0:27:42 > 0:27:44Where's your mum?
0:27:44 > 0:27:47She left me when I was like two-year-old.
0:27:47 > 0:27:50The only person I've got now is my girlfriend.
0:27:50 > 0:27:52I don't have no-one, nowhere else.
0:27:54 > 0:27:57MIQUITA SOBS
0:27:57 > 0:27:59I just feel really bad for him.
0:27:59 > 0:28:03His dad's just died and he doesn't have any family.
0:28:03 > 0:28:07He's, like, really trying to change his situation.
0:28:07 > 0:28:09And he's now going to get a payday loan.
0:28:09 > 0:28:12It's like watching him walk in the completely wrong direction.
0:28:19 > 0:28:21'But Dean's situation isn't unique.
0:28:21 > 0:28:23'In 2004, the rate of unemployment
0:28:23 > 0:28:27'in under 25s stood at just under 12%.
0:28:27 > 0:28:29'Today it's almost double that.
0:28:30 > 0:28:34'And nearly a quarter of this age group rely on benefits.
0:28:35 > 0:28:39'It's a story Dennis Hussey from the National Debtline
0:28:39 > 0:28:41'hears all too often.'
0:28:41 > 0:28:44Why are we young and British and broke?
0:28:44 > 0:28:48I think the country, economically, is struggling much more
0:28:48 > 0:28:49than it was a few years ago.
0:28:49 > 0:28:52Benefits are being cut, there are less jobs out there than there
0:28:52 > 0:28:56were before and it means that everyone is feeling the squeeze.
0:28:56 > 0:28:59Even though there's less money to go around,
0:28:59 > 0:29:00the cost of living is still rising.
0:29:00 > 0:29:03But there's less money available to pay these bills
0:29:03 > 0:29:06than there was before. And these payday loan companies
0:29:06 > 0:29:08that you see all over the high street
0:29:08 > 0:29:11have spotted a gap in the market over the last few years
0:29:11 > 0:29:15and they have filled that gap very effectively and very ruthlessly.
0:29:15 > 0:29:17And what was that gap?
0:29:17 > 0:29:21The immediacy that people are used to now and expect?
0:29:21 > 0:29:24- Getting things quickly? - The immediacy is one.
0:29:24 > 0:29:26Whereas, in the past, people might have been able to get more
0:29:26 > 0:29:30assistance from the benefits system, crisis loans, short term help,
0:29:30 > 0:29:32that assistance is being reduced,
0:29:32 > 0:29:34so people have to turn elsewhere.
0:29:34 > 0:29:36The money is still needed. Where do you go for it?
0:29:36 > 0:29:41You go on the high street or you go hungry or cold, or both.
0:29:47 > 0:29:49'I've come to Swansea.
0:29:49 > 0:29:52'It's another area struggling with the effects of the recession.
0:29:52 > 0:29:56'And also home to Serai, who, for the last two years, has found it
0:29:56 > 0:29:59'hard to ignore the avalanche of payday
0:29:59 > 0:30:02'and doorstep lenders offering to solve her money troubles.'
0:30:02 > 0:30:04So how long have you lived in this area?
0:30:04 > 0:30:07I've lived in this area for four years now.
0:30:07 > 0:30:10I grew up in Trallwn, which is the area over that side.
0:30:10 > 0:30:12So you have been here for, like, four years.
0:30:12 > 0:30:14Since you've been in the area, have you noticed
0:30:14 > 0:30:17people talking about these companies more and more
0:30:17 > 0:30:20and just generally feeling that more people are involved with them?
0:30:20 > 0:30:22Now everybody is talking about it.
0:30:22 > 0:30:25I see different people all the time, it's like, "Oh I've got a loan.
0:30:25 > 0:30:28"I owe this much to Wonga or Provident or anybody."
0:30:30 > 0:30:34It's almost like the area is under siege from payday loan companies.
0:30:36 > 0:30:40- This is my favourite age. - When they can't walk or talk?
0:30:40 > 0:30:42Yeah. No answering back.
0:30:43 > 0:30:47'Serai and best friend Katrina are both members of a group
0:30:47 > 0:30:51'for young mums, most of whom are affected by bad debts.'
0:30:51 > 0:30:54- How many ladies are in the group? - Nine of us.
0:30:54 > 0:30:58And how many out of the nine have loans with payday load companies?
0:30:58 > 0:31:00Five of us.
0:31:00 > 0:31:01Five out of nine do?
0:31:01 > 0:31:04'But none of those five have jobs.
0:31:04 > 0:31:08'They were offered loans on their benefits and tax credits.'
0:31:08 > 0:31:10What is absolutely ridiculous to me
0:31:10 > 0:31:13is that they are called payday loans. You weren't even working.
0:31:13 > 0:31:16- So this wasn't a payday, this was your benefits paying back.- Yeah.
0:31:16 > 0:31:19Did they ever talk about the fact that you weren't actually working?
0:31:19 > 0:31:22They'd ask, first off, "Are you working or are you on benefits?
0:31:22 > 0:31:24"You're on benefits?"
0:31:24 > 0:31:26And then they'll just take in how much you actually receive
0:31:26 > 0:31:29a week or a month and they'll say, "Right, OK, that's fine."
0:31:29 > 0:31:31But it's never seen as a negative.
0:31:31 > 0:31:33They're never like "OK, if you're on benefits, we can't do this."
0:31:33 > 0:31:37No. As long as you have a certain amount coming in,
0:31:37 > 0:31:39they'll be fine with it.
0:31:39 > 0:31:42'Serai and Katrina both got into trouble as their first
0:31:42 > 0:31:44'Christmas as single mums approached
0:31:44 > 0:31:47'and they started receiving text messages
0:31:47 > 0:31:50'and leaflets through the door offering them loans.'
0:31:50 > 0:31:52They know it's the most money-making time for them.
0:31:52 > 0:31:55They know people in our circumstances,
0:31:55 > 0:31:58especially if they've got one or two or more kids,
0:31:58 > 0:32:00they need money and they're going to struggle
0:32:00 > 0:32:02and they start targeting.
0:32:02 > 0:32:03Was it like that for you, as well?
0:32:03 > 0:32:06Yeah, I wasn't with the baby's father.
0:32:06 > 0:32:08So, for Christmas I had done it on my own,
0:32:08 > 0:32:11so I ended up getting a loan out.
0:32:11 > 0:32:14It looks really easy, you know?
0:32:14 > 0:32:16You borrow this much, you pay this much back
0:32:16 > 0:32:18in 30 days or however many days,
0:32:18 > 0:32:20and it looks really reasonable,
0:32:20 > 0:32:21until you've got to pay it back.
0:32:21 > 0:32:24What do you do in that situation, then?
0:32:24 > 0:32:25Borrow more money.
0:32:27 > 0:32:29Shall we do some crafts?
0:32:29 > 0:32:32Whilst trying to provide for their young families, both girls now
0:32:32 > 0:32:36found themselves with bad debt problems.
0:32:36 > 0:32:38Mummy, is that the same yellow?
0:32:38 > 0:32:42'Serai's led her to nearly having a breakdown.'
0:32:42 > 0:32:43What were you feeling like?
0:32:43 > 0:32:45I was really depressed.
0:32:45 > 0:32:47I couldn't leave the house. I couldn't face anybody.
0:32:47 > 0:32:49Me and the kids were in the house every day
0:32:49 > 0:32:51and I just felt like ending it.
0:32:51 > 0:32:53I was so bad.
0:32:53 > 0:32:55It was because of all the debt.
0:32:55 > 0:32:57It was the lowest moment of my life.
0:32:57 > 0:32:59I was just terrified, I was scared.
0:32:59 > 0:33:01I was on my own.
0:33:01 > 0:33:03I'm going to start crying!
0:33:06 > 0:33:10It feels like you girls were getting them to help you feel
0:33:10 > 0:33:13independent and be able to look after your families on your own?
0:33:13 > 0:33:15Yeah.
0:33:17 > 0:33:20I felt like I couldn't pay for my kids.
0:33:20 > 0:33:21Oh, my God!
0:33:28 > 0:33:30'The girls freely admit they shouldn't have borrowed
0:33:30 > 0:33:33'the money, but they believe that the companies targeted them
0:33:33 > 0:33:35'when they were most vulnerable.
0:33:35 > 0:33:39'And when someone's offering what seems an easy fix,
0:33:39 > 0:33:40'it can be hard to say no.'
0:33:42 > 0:33:44Do you want to walk on this side?
0:33:44 > 0:33:46'Cases like this are one of the reasons why the payday loan
0:33:46 > 0:33:49'industry is now under so much scrutiny.
0:33:49 > 0:33:52'People like Serai, who can't afford to pay the money back
0:33:52 > 0:33:56'have ended up taking out another loan and another
0:33:56 > 0:33:58'just to keep their head above water.
0:33:58 > 0:34:01'It's what's known as a "rollover",
0:34:01 > 0:34:03'and it's these loans that make lenders the most money -
0:34:03 > 0:34:06'in fact, almost half of everything they pocket.'
0:34:09 > 0:34:13'I want to know how some of these companies decide who to lend
0:34:13 > 0:34:15'to in the first place.'
0:34:17 > 0:34:20'And I've been put in touch with someone who's ready to
0:34:20 > 0:34:22'expose their secrets.
0:34:22 > 0:34:26'For six months, he worked for one of the high street lenders
0:34:26 > 0:34:29'and experienced their strategy first-hand.
0:34:29 > 0:34:32'He quit, but, still worried about repercussions,
0:34:32 > 0:34:34'he doesn't want to be identified.'
0:34:35 > 0:34:39Were you ever given any rules on someone's vulnerability?
0:34:39 > 0:34:43No. There were no rules whatsoever with vulnerability.
0:34:43 > 0:34:45It wouldn't matter if they came in
0:34:45 > 0:34:48and they looked like they'd slept at a shelter.
0:34:48 > 0:34:51If they had a bank statement, if they had their ID
0:34:51 > 0:34:53and they applied and got accepted
0:34:53 > 0:34:56you would give them that loan.
0:34:56 > 0:34:59And I remember, in my first week, I would be corrected by my
0:34:59 > 0:35:02manager that as soon as they said they weren't working,
0:35:02 > 0:35:05they would be like, "No, but they've got children,
0:35:05 > 0:35:08"they might get tax credits. Do it off the tax credits."
0:35:08 > 0:35:11The people that I saw coming into the shop are people
0:35:11 > 0:35:13that are struggling to feed their children.
0:35:13 > 0:35:16I just think that's so... It just feels so immoral.
0:35:16 > 0:35:22The idea that I was earning money from this it was...it was horrible.
0:35:30 > 0:35:33'He only worked in one store, but hearing from our whistle-blower
0:35:33 > 0:35:37'has confirmed my worst fears about how some of the industry works.
0:35:37 > 0:35:39'So at what point does profit become
0:35:39 > 0:35:42'more important than everything else?'
0:35:44 > 0:35:48'I'm on my way to meet someone whose loan has cost more than just money.'
0:35:50 > 0:35:54I've been here for just over a year now, so I'm getting used to it.
0:35:54 > 0:35:58- It's not much, but it's my home, though.- Yeah.
0:35:58 > 0:36:00So it's always been just you?
0:36:00 > 0:36:04In this flat yeah, yeah. It's always just me.
0:36:04 > 0:36:07'When Chris left work due to ill health, he felt he had no choice
0:36:07 > 0:36:11'but to take out a £400 payday loan to cover his bills.
0:36:11 > 0:36:15'He soon ran into trouble, and couldn't afford to repay it.
0:36:15 > 0:36:17'But the lender wanted their money back.'
0:36:17 > 0:36:20They weren't prepared to reduce it to a manageable amount,
0:36:20 > 0:36:22they weren't prepared to give me a repayment plan.
0:36:22 > 0:36:26And I was living at my parents at the time.
0:36:26 > 0:36:28Right. Did your parents know what was going on?
0:36:28 > 0:36:30They did, when the letters started coming
0:36:30 > 0:36:32and the phone calls started.
0:36:32 > 0:36:33Letters with red writing.
0:36:33 > 0:36:35"We're going to send bailiffs out
0:36:35 > 0:36:37"and we are going to repossess property in your house."
0:36:37 > 0:36:40- That's their property?- It's their property and the last thing
0:36:40 > 0:36:43they want is bailiffs coming and taking their stuff
0:36:43 > 0:36:46to cover a loan that I took.
0:36:46 > 0:36:48So it would start arguments between me and my mum
0:36:48 > 0:36:52and then it would start arguments between my stepdad, as well.
0:36:52 > 0:36:56And it just got to a point where they didn't want me in the house.
0:36:56 > 0:36:59So after a while, it's not even about the money any more?
0:36:59 > 0:37:01No. You might have £900 debt
0:37:01 > 0:37:05but I had priceless amounts of family damage.
0:37:09 > 0:37:11'The pressures of dealing with his illness,
0:37:11 > 0:37:14'combined with the stress of the barrage of calls and letters
0:37:14 > 0:37:17'to his parents' home led Chris to breaking point.'
0:37:20 > 0:37:22The night that I ended up here,
0:37:22 > 0:37:24I felt like I had nowhere to turn.
0:37:24 > 0:37:26This is a point you'd got to emotionally
0:37:26 > 0:37:28because of the things that had happened?
0:37:28 > 0:37:31Everything that was going on, I just could not bare to live.
0:37:31 > 0:37:34I didn't think, it wasn't pre-meditated.
0:37:34 > 0:37:35I climbed across the bridge
0:37:35 > 0:37:39and I was on this side of it, just holding on to one of those pipes
0:37:39 > 0:37:41ready to let go.
0:37:41 > 0:37:43I was very emotional, I was crying.
0:37:45 > 0:37:48But I was... No fear.
0:37:48 > 0:37:50I was very prepared to let go.
0:37:50 > 0:37:53To me it at the time, it was scarier to think that
0:37:53 > 0:37:56I had to wake up tomorrow to deal with it all again.
0:37:56 > 0:38:00Medical professionals, myself included, my family all agree,
0:38:00 > 0:38:04the final straw was the payday loan company.
0:38:04 > 0:38:08And that's what pushed me to attempt suicide.
0:38:09 > 0:38:13'Chris was sectioned for his own safety in a secure hospital,
0:38:13 > 0:38:17'but even there he found the company refused to leave him alone.'
0:38:17 > 0:38:22I was in a psychiatric hospital for just over four weeks
0:38:22 > 0:38:25and even when I was in there, I was getting phone calls.
0:38:25 > 0:38:27First thing they would say is, "Can you make a payment today?"
0:38:27 > 0:38:30And I'm, "Sorry, no, I don't have access to a debit card."
0:38:30 > 0:38:32Do you think they knew what kind of establishment
0:38:32 > 0:38:33they were finding you at?
0:38:33 > 0:38:35I did explain to them I was on a psychiatric ward.
0:38:35 > 0:38:38- You can't just pop... - Pop to the cash point.
0:38:38 > 0:38:41I couldn't even pop to the local shop just around the corner.
0:38:41 > 0:38:44I was on that ward for my own protection.
0:38:44 > 0:38:47There's big, huge electromagnets holding the doors shut,
0:38:47 > 0:38:50or else I'd have broke free weeks ago!
0:38:50 > 0:38:52And then... No, I can't get to the bank.
0:38:52 > 0:38:54No, I can't pop to the bank.
0:38:54 > 0:38:56To be honest, looking back,
0:38:56 > 0:38:58you couldn't make the story up.
0:39:00 > 0:39:04'With the help of Citizens Advice, Chris's lender eventually
0:39:04 > 0:39:08'agreed to a debt plan allowing him to pay off a pound every month.
0:39:08 > 0:39:10'But after a rift with his family,
0:39:10 > 0:39:13'and thoughts of ending his life, he feels the pressures
0:39:13 > 0:39:17'created by that £400 loan caused his life to unravel.
0:39:17 > 0:39:20'And it will be hard to get over the damage.'
0:39:21 > 0:39:25I'm feeling quite shocked after what we're finding out.
0:39:25 > 0:39:28Actually, quite angry, because these companies are giving out
0:39:28 > 0:39:32loans to people who are not in a financial position
0:39:32 > 0:39:34to ever pay them back.
0:39:34 > 0:39:37Someone like Serai should never have been given a loan.
0:39:37 > 0:39:41And then, when they can't pay them back, they're being harassed
0:39:41 > 0:39:44and pressured to the point where they're actually contemplating
0:39:44 > 0:39:46taking their own lives, like someone like Chris.
0:39:46 > 0:39:49And it just feels like the companies have absolutely
0:39:49 > 0:39:52no regard for their customers or take any
0:39:52 > 0:39:55responsibility for the position that they're left in.
0:39:56 > 0:40:00'Attitudes towards payday lenders have begun to change.
0:40:00 > 0:40:04'An official report three years ago said they provided a legitimate,
0:40:04 > 0:40:08'useful, service that helped to cover a gap in the market.
0:40:08 > 0:40:11'But, this year, the Office of Fair Trading said that there
0:40:11 > 0:40:14'was widespread irresponsible lending in the industry.
0:40:14 > 0:40:18'And, all over the country, the fight back has begun.'
0:40:18 > 0:40:20The Wonga conga!
0:40:20 > 0:40:22# Let's all do the conga
0:40:22 > 0:40:24# Wave bye-bye to Wonga
0:40:24 > 0:40:26# Na na na na.... #
0:40:26 > 0:40:30This is a national day of action against payday loan sharks!
0:40:30 > 0:40:34This national day of demonstration attracted thousands of people.
0:40:34 > 0:40:36Look, it's like Free Willy, except it's not Free Willy,
0:40:36 > 0:40:38it's In Debt Willy!
0:40:38 > 0:40:41Payday loan companies who offer you instant cash
0:40:41 > 0:40:45with no background checks for extortionate rates of interest.
0:40:45 > 0:40:47It's predatory, it's predatory lending.
0:40:47 > 0:40:50- No to payday loan sharks! - No, say no!
0:40:50 > 0:40:54No to payday loan sharks! No, say no!
0:40:55 > 0:40:58Someone who's definitely had enough of the worst of the industry
0:40:58 > 0:41:00is Jolyon Rubinstein.
0:41:00 > 0:41:03Borrow £50 to £500.
0:41:03 > 0:41:05He's the face of BBC Three's comedy series
0:41:05 > 0:41:07The Revolution Will Be Televised
0:41:07 > 0:41:09and he's also a friend.
0:41:09 > 0:41:13TV: So is 219.1% APRA, is that a good deal?
0:41:13 > 0:41:17'Last year, a sketch on his show caught on camera how some
0:41:17 > 0:41:20'lenders do only the most basic checks about
0:41:20 > 0:41:22'whether you can afford to take out a loan.'
0:41:22 > 0:41:23350.
0:41:23 > 0:41:26- We do loans up to £5,000. - Oh, great!
0:41:26 > 0:41:28'And they didn't seem to be bothered about how you'd spend it.'
0:41:28 > 0:41:31I need the money to pay back some gambling debts
0:41:31 > 0:41:33and some drug debts. Is that all right?
0:41:33 > 0:41:34As long as we get paid back,
0:41:34 > 0:41:36we don't care what you do with the money.
0:41:36 > 0:41:38As long as we get paid, don't care what you do with the money.
0:41:38 > 0:41:40I'll have £300, then, please.
0:41:40 > 0:41:42That's no problem.
0:41:42 > 0:41:44For me, I thought that when I was like,
0:41:44 > 0:41:46"Right, I'm a drug dealer",
0:41:46 > 0:41:49I thought that would raise a red flag.
0:41:49 > 0:41:52So that was fine. And that didn't. That shocked me.
0:41:52 > 0:41:54I mean, when you start saying to people,
0:41:54 > 0:41:56"Can I pay you back in weed?" You know?
0:41:56 > 0:41:58And then they're like, "No, you can't,
0:41:58 > 0:42:01"but when would you like an appointment?"
0:42:01 > 0:42:04I mean, anyone in their right mind presented with that,
0:42:04 > 0:42:07you'd think that someone would be like, "This person is unstable.
0:42:07 > 0:42:11"This person is not really the sort of person you should just be
0:42:11 > 0:42:13"giving loads of money to and lending it to"
0:42:13 > 0:42:19This business is entirely dedicated to profit at all costs.
0:42:19 > 0:42:24Absolutely nothing matters, apart from the ones and the zeros.
0:42:27 > 0:42:30'But a lot's happened since Jolyon's filming.
0:42:30 > 0:42:33'In March this year, the Office of Fair Trading told the 50 biggest
0:42:33 > 0:42:37'payday loan companies they needed to clean up their act
0:42:37 > 0:42:39'and stop running misleading ads,
0:42:39 > 0:42:42'make sure they give clear information
0:42:42 > 0:42:47'and better check that borrowers are able to pay back the loan.
0:42:47 > 0:42:49'So, has that done the trick?
0:42:49 > 0:42:53'To find out, I'm going to go undercover
0:42:53 > 0:42:57'to see if some payday lenders are still breaking the rules.
0:42:59 > 0:43:04'It's nothing like anything I've done before, and I'm terrified.
0:43:04 > 0:43:07'For moral support, I'll be taking an old acquaintance with me.'
0:43:07 > 0:43:09- How are you?- Not bad.
0:43:09 > 0:43:12'With nine payday loans to his name, Josh is better placed than most to
0:43:12 > 0:43:14'help me get the answers that I need.'
0:43:14 > 0:43:18We look like we're going to war or something!
0:43:23 > 0:43:25It says on the front £200 interest free loan.
0:43:25 > 0:43:28See what they say about that.
0:43:30 > 0:43:34'We called into ten loan shops in towns around the North West.'
0:43:38 > 0:43:39Roughly, about £100.
0:43:41 > 0:43:44'And it did seem the crack down on payday lending
0:43:44 > 0:43:45'is making a difference.
0:43:45 > 0:43:48'Some of them said they no longer offer payday loans
0:43:48 > 0:43:51'and they were very open about why.'
0:43:59 > 0:44:02'But that didn't mean they were squeaky clean.'
0:44:24 > 0:44:26So if there was a young kid who
0:44:26 > 0:44:28was quite blatantly borrowing money
0:44:28 > 0:44:30so he could buy drugs, it's just a complete
0:44:30 > 0:44:32lack of responsibility to go,
0:44:32 > 0:44:35"No, we don't care. Once you've got the money, it's up to you."
0:44:35 > 0:44:37'More than half of the shops we asked
0:44:37 > 0:44:40'would still give us a payday loan
0:44:40 > 0:44:42'as long as we were getting money coming in from somewhere.
0:44:42 > 0:44:44'They didn't care if we had a regular payday,
0:44:44 > 0:44:47'and were more than happy to lend against benefits.'
0:44:56 > 0:44:58'So they saw no problem in using the money
0:44:58 > 0:45:00'I would be getting to feed my kids.'
0:45:07 > 0:45:10'Most surprising of all was that we still rarely got any
0:45:10 > 0:45:11'explanation of interest rates
0:45:11 > 0:45:14'or of how the cost of the loan could spiral.
0:45:14 > 0:45:17'That's something they all should be doing.
0:45:17 > 0:45:20'But instead, some downplayed the APR, saying it's not
0:45:20 > 0:45:22'relevant for this type of loan.'
0:45:30 > 0:45:32'One shop did try and spell out the maths to us,
0:45:32 > 0:45:35'but, unfortunately, they got it wrong.
0:45:48 > 0:45:49Thank you.
0:45:49 > 0:45:53'In fact, that shop's interest would be more than twice that.
0:45:53 > 0:45:55'No-one is saying that these sums are easy.
0:45:55 > 0:45:57'But if we're relying on them to explain things,
0:45:57 > 0:45:59'you'd hope they'd get it right.'
0:45:59 > 0:46:01You're really good.
0:46:01 > 0:46:03I don't know how I would have done it without you, actually.
0:46:03 > 0:46:05Really pushy! I can't be pushy.
0:46:05 > 0:46:08'Very few lenders did everything by the book.
0:46:08 > 0:46:11'But, with no two of them operating in exactly the same way,
0:46:11 > 0:46:13'it seemed like some of them were
0:46:13 > 0:46:15'almost making it up as they went along.
0:46:15 > 0:46:19'And I can't quite believe that even now, after all the flak they've
0:46:19 > 0:46:21'been getting, some of them still don't seem to be
0:46:21 > 0:46:23'lending responsibly.'
0:46:25 > 0:46:29'But I want to hear what the industry itself has to say about how
0:46:29 > 0:46:32'they lend money, so I've come to the organisation
0:46:32 > 0:46:34'that represents most of them.'
0:46:34 > 0:46:36Why do you think there is so much negative
0:46:36 > 0:46:38attention on payday loan companies?
0:46:38 > 0:46:40It's an industry that's grown up under the spotlight, however
0:46:40 > 0:46:42I can talk about the positives that
0:46:42 > 0:46:44we've seen on a day-to-day basis.
0:46:44 > 0:46:46Eight out of ten pay it back in full and on time.
0:46:46 > 0:46:49So you feel that maybe everyone that is negative about
0:46:49 > 0:46:51payday loan companies, they've just got it wrong?
0:46:51 > 0:46:52No, I don't feel like that at all.
0:46:52 > 0:46:55There is bad practice out there and we're working quite closely
0:46:55 > 0:46:57with the regulator to make sure that's eradicated.
0:46:57 > 0:47:01So what checks do your members do before lending money?
0:47:01 > 0:47:04Is it really possible to do the right type of checks?
0:47:04 > 0:47:06Within ten minutes you can find out
0:47:06 > 0:47:08whether someone has the right affordability?
0:47:08 > 0:47:09Yeah, they happen within a split second,
0:47:09 > 0:47:11through the credit reference agencies,
0:47:11 > 0:47:13all the online databases.
0:47:13 > 0:47:15They can get that information immediately,
0:47:15 > 0:47:16the same way credit cards do.
0:47:16 > 0:47:19The difference is the speed that the money lands in your bank account.
0:47:19 > 0:47:22How many people do you think really understand what APR is?
0:47:22 > 0:47:23I had no idea what it meant.
0:47:23 > 0:47:25It's really misleading, cos it's annual,
0:47:25 > 0:47:28whereas our product is obviously very short-term.
0:47:28 > 0:47:31Our members are committed to showing it - you have to show it, cos
0:47:31 > 0:47:33it's a regulation - and they'll talk you through and explain it,
0:47:33 > 0:47:35but they'll also tell you what
0:47:35 > 0:47:37the cost of the loan is in pounds and pence.
0:47:37 > 0:47:40I feel that there are some people that we just know are
0:47:40 > 0:47:42a bit skint - they're on child benefits, they're on JSA -
0:47:42 > 0:47:45and the last thing they need in their life is a payday loan.
0:47:45 > 0:47:47I think that's a difficult one, cos if their income
0:47:47 > 0:47:49and expenditure is there and they can afford to pay back
0:47:49 > 0:47:52the loan and they need it, then I don't
0:47:52 > 0:47:55think we can decide whether they're right to have that access to credit.
0:47:55 > 0:47:58They obviously need it for a reason, for a purpose,
0:47:58 > 0:48:00- whatever it may be, whether it's an emergency.- Yeah.
0:48:00 > 0:48:02Where would they go if they couldn't access a payday loan?
0:48:02 > 0:48:05Aren't the loans being given out irresponsibly in the first place?
0:48:05 > 0:48:08I think it's important that the loans are only lent to people
0:48:08 > 0:48:09who can afford to pay them back.
0:48:09 > 0:48:11There's no commercial or business sense in lending to
0:48:11 > 0:48:13someone who's going to run away with 100 quid
0:48:13 > 0:48:16and you're not going to see it again.
0:48:16 > 0:48:19'She makes it all sound very positive, as does Wonga.
0:48:19 > 0:48:21'The biggest in the business told us they don't see themselves
0:48:21 > 0:48:26'as a payday company because their loans have more flexibility.
0:48:26 > 0:48:30'Like some other lenders, they also freeze interest rates
0:48:30 > 0:48:32'so it can't spiral.
0:48:32 > 0:48:36'And, as all lenders now have to, they told us that they limit
0:48:36 > 0:48:39'the number of times a loan can roll over.
0:48:39 > 0:48:43'But, even so, I've seen with my own eyes the devastating
0:48:43 > 0:48:46'consequences when lenders don't stick to the rules.
0:48:48 > 0:48:50'And I've met people who'll be paying off their debts
0:48:50 > 0:48:51'for years to come.
0:48:54 > 0:48:57'But there are others who won't get that chance.
0:48:59 > 0:49:01'Kenny Davies was a rugby fanatic
0:49:01 > 0:49:05'and played with a group of lifelong friends.'
0:49:05 > 0:49:07You've been playing rugby together since how old?
0:49:07 > 0:49:10Since we were under sevens, under eights. So seven years old.
0:49:10 > 0:49:12Just the most funniest, maddest guy you'd ever meet.
0:49:12 > 0:49:15He was just the one always having a laugh.
0:49:15 > 0:49:16Crazy, I'd call him, as well. He was.
0:49:16 > 0:49:18Everyone loved him. That's why it says legend.
0:49:18 > 0:49:22Everyone used to call him Legend. He was heart and soul of the team.
0:49:22 > 0:49:26Did you have any awareness of the fact that he was in debt?
0:49:26 > 0:49:28I knew he was in debt, obviously,
0:49:28 > 0:49:30but I didn't know how far in debt he was.
0:49:30 > 0:49:32After Christmas, he hurt his ankle, so he couldn't
0:49:32 > 0:49:35work and that's where the spiral obviously went down from there.
0:49:35 > 0:49:39- That's when you think he probably first took out a loan?- Yeah.
0:49:39 > 0:49:41Obviously he thinks he's working the week after and it's
0:49:41 > 0:49:43when you don't work the week after
0:49:43 > 0:49:45and you're going downhill, aren't you, from then.
0:49:45 > 0:49:47You can't make the repayments because
0:49:47 > 0:49:50you're in that instant mess, aren't you?
0:49:50 > 0:49:52Why do you think Kenny chose to go
0:49:52 > 0:49:55to a company like that to help himself?
0:49:55 > 0:49:57Because I think maybe he didn't see any other way.
0:49:57 > 0:49:59He's a bloke, he's proud, you know what I mean?
0:49:59 > 0:50:00He wouldn't come to us lot and go,
0:50:00 > 0:50:03"Could you give us some money?" or, "I need help."
0:50:03 > 0:50:04He would've tried to do it secretly.
0:50:04 > 0:50:07He wouldn't want family and friends knowing he was struggling.
0:50:07 > 0:50:12'With spiralling debts, Kenny couldn't see a way out.
0:50:12 > 0:50:14'Said to owe thousands to payday lenders,
0:50:14 > 0:50:19'he took his own life in the very field he played rugby.'
0:50:21 > 0:50:24I was driving up Agecroft Road down there and me mate rang me
0:50:24 > 0:50:26and my mate rang me and he just said,
0:50:26 > 0:50:27"Kenny's killed himself."
0:50:27 > 0:50:29I started butting the wall, going mad.
0:50:29 > 0:50:32I didn't believe it. My mum and dad said, "What's up with you?"
0:50:32 > 0:50:34And I was just a mess. Then it got worse, everyone crying
0:50:34 > 0:50:36and holding on to each other and stuff.
0:50:36 > 0:50:40How do you feel about the fact that he killed himself in this park
0:50:40 > 0:50:44where you all grew up and where you played rugby for so long together?
0:50:44 > 0:50:45Erm...
0:50:46 > 0:50:49I just think he hoped...
0:50:49 > 0:50:51he hoped to stay there. If that makes sense.
0:50:51 > 0:50:55He hoped his spirit was here and that's why he did it here.
0:50:55 > 0:50:57I don't know.
0:50:57 > 0:51:01Actually, when he died, we all come here and just spoke about memories.
0:51:01 > 0:51:03We were here all night talking.
0:51:04 > 0:51:06He shouldn't have died.
0:51:06 > 0:51:09'His friends are in no doubt that the lenders Kenny
0:51:09 > 0:51:12'borrowed from share some responsibility for his death.'
0:51:12 > 0:51:14It's such a dark thing that's happened,
0:51:14 > 0:51:15a tragic thing that's happened.
0:51:15 > 0:51:18It's quite strange that the adverts are so jolly and colourful.
0:51:18 > 0:51:20Exactly. They don't show you the people crying
0:51:20 > 0:51:23tears at home when they can't afford to feed their families and they've
0:51:23 > 0:51:26got to - that's the last resort - to go to one of these companies.
0:51:26 > 0:51:28If you can't afford to pay off £100 debt,
0:51:28 > 0:51:31how are you going to get yourself in £400 debt and pay that off?
0:51:31 > 0:51:33That's why they're just ripping people off.
0:51:33 > 0:51:35I wish they weren't there.
0:51:41 > 0:51:44'Love them or loathe them, there is no doubt payday loan companies
0:51:44 > 0:51:48'offer something that traditional banks can't and won't compete with.
0:51:48 > 0:51:50'And when they behave responsibly
0:51:50 > 0:51:54'some can offer an invaluable service.
0:51:54 > 0:51:57'But there are other places you can go to source
0:51:57 > 0:51:59'a less risky short-term loan.'
0:52:02 > 0:52:05'Struggling with debts through doorstep and payday lenders,
0:52:05 > 0:52:08'Serai and Katrina, the Swansea mums I met earlier,
0:52:08 > 0:52:13'have joined the local credit union, a sort of community bank.'
0:52:13 > 0:52:16Why have you decided to come to the credit union today?
0:52:16 > 0:52:18We've come to open up a savings account with them.
0:52:18 > 0:52:21What did you know about it before you got here?
0:52:21 > 0:52:25Not a lot. We've come to find out a bit more, see what they do.
0:52:25 > 0:52:28The main thing is that the interest rates are extremely low
0:52:28 > 0:52:31and that they do put quite a lot of emphasis on saving your money.
0:52:31 > 0:52:33Helping you save.
0:52:33 > 0:52:35I'm really up for saving now and being able to sort my money out
0:52:35 > 0:52:38and keeping myself in check now, as well.
0:52:41 > 0:52:45'There are over 500 credit unions across the UK offering
0:52:45 > 0:52:48'savings and loans to their members.
0:52:48 > 0:52:50'Most now offer current accounts,
0:52:50 > 0:52:52'and a few even offer mortgages.
0:52:52 > 0:52:56'So far, over 1.5 million of us have signed up.'
0:52:56 > 0:52:59So why do you think the girls should be here?
0:52:59 > 0:53:01It's a lot cheaper than a payday loan company.
0:53:01 > 0:53:04We only charge 2% interest per month.
0:53:04 > 0:53:06Oh, my God, that's a totally different kind
0:53:06 > 0:53:09- of number than a payday loan company.- Yeah.
0:53:09 > 0:53:12The thing with our loans is we take time in looking at them
0:53:12 > 0:53:14and making sure people can afford them,
0:53:14 > 0:53:17rather than just approving them straightaway.
0:53:17 > 0:53:20It's sort of a good thing, though, isn't it?
0:53:20 > 0:53:24- It's like it is actually being thought through.- Yeah.
0:53:24 > 0:53:26I want to sign up and do it now, yeah.
0:53:27 > 0:53:28Have a card!
0:53:33 > 0:53:35'Our Swansea mums aren't the only people I've met now
0:53:35 > 0:53:37'reorganising their finances.'
0:53:42 > 0:53:46'To pay off her £1,000 debt to her parents,
0:53:46 > 0:53:49'Lauren has had to put education on hold and take two jobs.'
0:53:49 > 0:53:52Are you angry that this thing has happened?
0:53:52 > 0:53:53I don't want to say happened to you,
0:53:53 > 0:53:56cos I think you know that it was your choice,
0:53:56 > 0:53:59but are you angry that this is now part of your story?
0:53:59 > 0:54:01Life isn't all roses, is it?
0:54:01 > 0:54:04It doesn't all go exactly to plan.
0:54:04 > 0:54:07But, at the same time, it did make me
0:54:07 > 0:54:08stop in my tracks in the end,
0:54:08 > 0:54:14when my mum went absolutely, like, ballistic, at me
0:54:14 > 0:54:16- and I honestly haven't done anything since.- Yeah.
0:54:16 > 0:54:20For the last few months, I've actually got from one end
0:54:20 > 0:54:24to the end of the month and I've had money at the end of the month.
0:54:24 > 0:54:27- Oh, my God, that's a great feeling! - Yeah, it's really, really good.
0:54:27 > 0:54:30I don't know, something kind of clicked.
0:54:30 > 0:54:33It all like... It kind of grounds you.
0:54:35 > 0:54:39'But the one I'm most pleased about is my Rochdale friend, Josh.'
0:54:39 > 0:54:41So how are things now for you, Joshy?
0:54:41 > 0:54:45- Brilliant. I've signed up to an agency...- Brilliant.
0:54:45 > 0:54:47..since we did the secret filming.
0:54:47 > 0:54:50- And they've got me a job at a place...- So you have got a job?
0:54:50 > 0:54:51Yeah, I've got a job.
0:54:51 > 0:54:54This is what I wanted to hear today, Josh. That's so brilliant.
0:54:54 > 0:54:57The best part about that is that I can now start a debt management plan,
0:54:57 > 0:55:02which means, basically, they freeze the interest, which is a good thing.
0:55:02 > 0:55:04And they work out what I can afford each month
0:55:04 > 0:55:07with still my living expenses, as well.
0:55:07 > 0:55:09So I can pay off my debts
0:55:09 > 0:55:11but still have money to live at the same time.
0:55:11 > 0:55:13And now, I don't get a phone call, don't get letters.
0:55:13 > 0:55:15- You have your life back!- Yeah.
0:55:15 > 0:55:17What's it like when you do walk down the high street
0:55:17 > 0:55:19and you see payday loan shops now?
0:55:19 > 0:55:21- How do you feel?- Just laugh.
0:55:21 > 0:55:22- You laugh?- Yeah.
0:55:22 > 0:55:25- We can now chuckle in the face of payday loan shops.- Yeah.
0:55:25 > 0:55:27It were embarrassing, walking past before,
0:55:27 > 0:55:29- cos they know that I owe them money.- Yeah.
0:55:29 > 0:55:31Now I can walk past with my head held high,
0:55:31 > 0:55:33knowing that they're getting paid off.
0:55:33 > 0:55:35I love that you feel like that. That's brilliant.
0:55:35 > 0:55:37- I'm so happy for you.- Thank you.
0:55:37 > 0:55:39- Really, well done, Josh. Really. - Thank you.
0:55:43 > 0:55:46'Hearing about the problems caused by payday loans, it would be easy
0:55:46 > 0:55:48'to say lenders need to be reined in more and,
0:55:48 > 0:55:52'in the worst cases, maybe even stopped from trading.
0:55:52 > 0:55:55'But some of them do play by the rules.
0:55:55 > 0:55:58'So when trying to decide who's responsible for all this,
0:55:58 > 0:56:02'I can't help thinking there's blame on both sides.'
0:56:02 > 0:56:05Anyone that takes out a payday loan of course takes full
0:56:05 > 0:56:07responsible for taking it out.
0:56:07 > 0:56:10No-one forces anyone to take out a payday loan.
0:56:10 > 0:56:13But I don't think half the people that get them
0:56:13 > 0:56:17know what questions to ask the companies and it's absolutely
0:56:17 > 0:56:20up to the companies to give out the right information.
0:56:20 > 0:56:23Cos it just...it terrifies me that if people aren't getting
0:56:23 > 0:56:27the right information, that they're going to continue to get into actual
0:56:27 > 0:56:32real trouble with companies they thought were there to help them.
0:56:32 > 0:56:35'A million people are going to be taking out payday loans
0:56:35 > 0:56:37'for Christmas this year.
0:56:37 > 0:56:40'But if the money's not lent responsibly, I wonder how many
0:56:40 > 0:56:42'of them really know what they're getting into.'
0:57:00 > 0:57:03Subtitles by Red Bee Media Ltd