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CAB - 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.”
Notes to editors
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The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales see www.citizensadvice.org.uk
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The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality. For online advice and information see www.adviceguide.org.uk
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Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 6.9 million problems from April 2011 to March 2012. For full 2011/2012 service statistics see our quarterly publication Advice trends
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Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable (nfpSynergy’s Brand Attributes survey, May 2010).
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Most Citizens Advice service staff are trained volunteers, working at around 3,500 service outlets across England and Wales.
