Citizens Advice Scotland have welcomed the UK government’s announcement of measures to improve the codes of practice among payday lenders.
CAS spokesperson Jeanette Campbell says:
“We are becoming increasingly concerned about the impact of payday loans. The evidence from CAB offices across Scotland shows that this type of loan is leaving more and more people in the misery of un-manageable debt.
“So we welcome the government statement today. Any moves to improve the provision of clearer information to consumers has to be seen as a step in the right direction.
“However, this is only one step against what is clearly a growing problem. We would want to be sure that any code of practice would be effective. That means for example that it must be monitored independently, with input from consumer groups.
“The Office of Fair Trading is currently mounting its own investigation into the high-interest credit industry. Their report is due this summer, and hopefully that too will contribute towards better regulation and more protection for consumers.
“But, while all of these things are welcome, we would hope that consumers themselves would think twice before taking out a payday loan, or any form of high-interest credit. It may seem like a quick fix to your debt problem today, but in fact all you are doing is making your problems much worse tomorrow.
“No matter how bad your finances seem, high-interest loans are not the answer, and there are always alternative options available. Your local CAB will give you free, impartial and confidential advice on debt and budgeting issues.”
For more information contact Tony Hutson on 07774 751655.