The Consumer Credit Counselling Service (CCCS) has warned that debt charities trying to help people get out of debt are being snubbed by ruthless payday loan companies anxious to make sure they stay in debt.

Tactics used by the loan companies are not answering the phone when charities call to try to improve the terms of the debt, and making it hard for their customers to contact them, to further rack up the already high interest rates.

The Office of Fair Trading (OFT) is currently carrying out a review of payday loans. Meanwhile the CCCS are still recommending that those with debt problems – around one in 20 adults and growing – contact debt charities and definitely not debt management companies who they say exploit the vulnerable by charging for a service that is available free.