By June 17, 2013 Read More →

Payday lenders’ failure to treat customers fairly sparks Parliamentary action

Evidence from Citizens Advice found payday lenders are not keeping to their own promises including checking if people can afford to pay back loans, freezing interest rates and charges for those struggling to repay and not pressuring people into extending loans.

Paul Blomfield MP is now introducing a Private Members Bill to protect people from payday lenders.

Citizens Advice Chief Executive Gillian Guy said:

“Citizens Advice has exposed the shocking failure of payday lenders to stand by their own commitments to treat people fairly. Instead people who can’t afford to pay back loans are handed one after the other, resulting in many customers drowning in debt as interest rates and charges exacerbate problems.

“Celebrity endorsement, cartoon characters and football sponsorship deals lucratively advertise payday loans as a short-term fix, masking the long-term hardship that often follows.

“This Private Members Bill is a step towards protecting people from predatory practices and overcoming the problems payday lenders failed to address by breaking their promises to customers.”

Posted in: Borrowing

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Our in house editor who has many years financial services experience, and writes most of the journal entries you read on this site.

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