The review from the Financial Services Authority found evidence of “poor practice” among a number of intermediaries and lenders, as well as some instances of irresponsible lending by firms operating in the sub-prime sector.
And with thousands of people approaching Citizens Advice about debt each month, the organisation is keen to see appropriate action taken to protect the UK’s vulnerable borrowers.
“At Citizens Advice we see many cases where people are falling into arrears very quickly after taking out the loan, which questions whether their ability to pay was clearly checked at the outset,” said Sue Edwards, a spokesperson for the charity, in reference to sub-prime borrowing.
“The impact on our clients results in unbearable stress and the loss of their homes,” she added.
Citizens Advice operates from more than 3,000 locations across the UK and the organisation also aims to influence policy makers in the interest of consumers.