Christmas pay day loans to increase in London
It is estimated nearly half a million Londoners will take out pay day loans this Christmas to cover the cost of the festive period.
These short-term loans can have interest rates as high as 4,000%.
The government is planning to cap the amount lenders can charge but the loan companies say there is a demand for this style of short-term lending.
BBC London's Noel Titheradge meets Elisabeth Matthews who owes £2,000 after taking out four pay day loans while unemployed.
12 Dec 2012
- From the section London