The poll also found that 92 per cent of short-term borrowers fully understood the total cost of the loan before they committed to it and 85 per cent understood how their repayments would be taken.
The research – conducted on more than 500 customers who had borrowed from members of the Consumer Finance Association (CFA) – flies in the face of the public perception of payday lenders, who have garnered negative press and calls for their abolition in recent years for their business practices.
The CFA is a trade association that represents over 60 per cent of short-term lending businesses in the UK including Albemarle & Bond and high street chain Cash Converters.
Last year the CFA introduced a customer charter that outlined how payday lenders should clearly explain their terms to customers.
Russell Hamblin-Boone, chief executive of the CFA, said: “This snapshot is encouraging because it shows that customers of lenders who belong to CFA have benefited from the high standards we have put in place.”