This followed a survey by Which? that showed 69% of people who took out a payday loan have regretted doing so compared to 31% of people who took out more traditional types of credit such as loans or credit cards.
The findings also revealed that over 43% of payday loan borrowers agreed that it was too easy to get credit.
Georgiou said payday loans if used properly can be a short-term solution to a short-term problem but the results from the Which? survey made it apparent that they are being used in the wrong circumstances.
She said: “Much of the problem is that payday loans have generated so much attention that there is often insufficient knowledge of the broad array of alternative options available which can sometimes fix cashflow problems in a more structured and less harmful way.
“Consumers should consider carefully what they need to borrow the money for and think clearly about whether it is a genuine very short-term requirement. If after such considerations a loan is needed then it is important to be aware that not being accepted by your bank or a leading website doesn’t mean a payday loan is your only option.”
And Georgiou added: “Using soft search tools, loan applicants can review the full extent of options available without damaging their credit score unlike on many of the major loan comparison sites.
“Faced with figures that show 69% of payday borrowers regret taking out the loan information needs to be made more readily available to consumers about all their options.”
