Alan Hardman retired 18 months ago and was forced to borrow money after a delay in getting his pension. He paid back the short-term loan a fortnight later, but his pension was short of his expectations and he was forced to take another one a few weeks later.
He describes being caught up in a trap of borrowing more to pay back his interest, and said he thought the loan would be like a bank loan, but soon became aware of what he had inadvertently taken on, and wants to warn others to avoid falling into the trap he did. He said:
"It's just an ongoing, ongoing thing, and it grows and grows and you can't get out of it."
The FCA will take on new powers to ban adverts however there will be no new rules governing the interest rates charged by the companies.
New rules on the way for lenders in how they grant loans and demand payments, but no changes to the interest rates or fees they can charge.