Most borrowers 'do not know interest rates moneylenders charge'

The majority of people who borrow from registered moneylenders are unaware that they are paying interest rates of up to 150%, according to a survey by the Financial Regulator.

The regulator says its research has learned that many people take out loans with such lenders because it is convenient.

Most are happy with the service and have no problem meeting their repayments, but a small percentage say they may have difficulties in the future.

The most common reasons given for borrowing from moneylenders are family events and personal items.

Of those involved in the survey, 80% said they did not compare interest rates before taking out the loan, while 71% said they were unaware of what interest rate they were being charged.

The regulator says she plans to review the code of conduct for moneylenders to protect consumers and to get them a better deal.