Half of those who intend to take out a personal loan in the year ahead (two million people) have no idea that the majority of personal loans carry repayment penalties. Research from ICM Research for Intelligent Finance also reveals that over a third (16 million people) of all adults in the UK do not realise that most personal loans carry repayment penalties.
Chief executive Grenville Turner says: “The fact that 50% of people intending to get a loan have no idea about repayment penalties is worrying. I'd like to see the end of smoke and mirror tactics that intentionally – or otherwise – disguise these and see lenders being more upfront about the repayment penalties they charge. In the meantime, consumers need to check the small print before they borrow.”