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CAB - MPs have chance to hammer home hard truths about payday loans
As payday lenders face scrutiny by MPs at the BIS Select Committee today, Citizens Advice highlights the serious harm caused by unscrupulous payday lenders.
Citizens Advice Chief Executive Gillian Guy said:
“MPs have the opportunity to hammer home some hard truths from their constituencies. The payday loan industry has boomed as people struggle to cope with the rising cost of living, but it has failed to act responsibly.
“When I speak to MPs at the select committee on Tuesday I will tell them how evidence from Citizens Advice has found that people are being given loans without any proper checks to make sure they can afford to pay them back. This sends borrowers into a spiral of debt which is very hard to get out of.
“Some payday lenders are misusing continuous payment authorities by emptying their customers’ bank accounts without prior warning – leaving them without any money to get to work, pay the bills or buy food."