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Less than two-thirds of payday loans paid back on time

Less than two-thirds of payday loans are fully paid back on time or early, research for the Competition Commission has found.

The Commission, which is carrying out an industry-wide probe following reports of "deep-rooted" problems in the payday sector, published a progress report into its analysis so far.

The report said that around 65% of loans are repaid in full on time or early and repeat use of payday loans, either by rolling one over or taking out another loan, is "prevalent".

It has also found seven out of 10 customers reported that they had not shopped around before taking out their most recent loan, and six out of 10 said they had never done so.

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