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

Toxic payday lenders should be banned from trading immediately

6 Mawrth 2013

Responding to the OFT's report into the payday loan industry today Citizens Advice calls for guilty lenders to be stopped from trading immediately.

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

“Payday loans are proving toxic for many people. Unscrupulous lenders are ramping up costs when customers can’t afford to repay, and are emptying bank accounts to claw back loans, leaving people without a penny to their name. What’s worrying is that these loans are often given without proper credit checks, so too many people are given loans they won’t realistically be able to pay back.

“For too long this industry has acted as a law unto itself. So it is good to see the OFT planning to remove the licences of lenders who do not improve within the 12 week deadline. But to truly protect consumers, lenders who are still found guilty of flouting guidelines must be stopped from trading straight away.

“OFT’s proposal to refer the payday loan industry to the competition commission is a vital step to force the whole industry to stop irresponsible lending and treat customers fairly."

If you have had a problem with a payday loan you can get help from your local Citizens Advice Bureaux, online at www.adviceguide.org.uk  or complain about a lender to the Citizens Advice consumer service on 08454 04 05 06 or for Welsh-speaking advisers on 08454 04 05 05.  If you complain to a lender and are not satisfied with their response you can make a complaint to the Financial Ombudsman Service (FOS). If the lender is a member of a trade association, you can also complain to them.

The Citizens Advice service has seen a ten-fold increase in the proportion of clients receiving help with multiple debts which included a payday loan in the last four years.

Citizens Advice recently reported four payday lenders to the OFT asking the regulator for suspend their licence immediately following evidence from across the Citizens Advice service that show the firms to be using deceitful business practices.

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

Citizens Advice wants consumers to have an option of collective action which means when they've all suffered the same fate by a company they can complain and get compensation together as opposed to individually. This type of action would work well for people who have been treated unfairly by payday lenders.

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.