Neidio i’r llywio Neidio i’r cynnwys Neidio i’r troedyn

Rydym yn defnyddio cwcis i wella eich profiad o'n gwefan.
Gallwch ddarganfod mwy neu ddileu allan o rai cwcis - mae'r polisïau hyn ar gael yn Saesneg.

Menu

Government clampdown on payday lenders raiding bank accounts welcome

6 Mawrth 2013

Citizens Advice welcomes the Government's announcement that the payday loan industry will be a top priority for the Financial Conduct Authority and that the use of continuous payments authorities –where lenders take money from a person’s bank account to repay debts – will come under scrutiny.

Gillian Guy, Chief Executive at national charity Citizens Advice said:

“The Government is right to be worried: we’ve seen a ten-fold increase in people struggling with payday loans. While the adverts make them look like a quick fix, in reality lenders are handing out loans to people who can’t afford to repay, and rolling them over into huge, unmanageable debts.

“Payday loan firms’ use of continuous payment authorities is frightening and needs a serious clamp down. When people have had their bank account raided without any warning it can mean they’re left without any money to put food on the table, get to work or keep up with the rent.

“We’re pleased that the Financial Conduct Authority is keen to get a tight grip on the industry. As we help people with more than 2 million debt problems a year, we see lenders treating people unfairly far too often. We need a strong regulator to protect consumers from unscrupulous lenders and their overzealous tactics, and we believe the FCA should be able to do that. ”

Citizens Advice is also running a year-long study to assess whether lenders are complying with their voluntary code asking people to report their experiences – good and bad – of the payday loan industry via its online survey: adviceguide.org.uk/dialogue_payday_loan_survey

You can find Citizens Advice's response to the OFT's report into the payday loans industry here.

Notes to editors:

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service 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 see the Citizens Advice website.
  2. 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.
  3. To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
  5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends
  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.