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Payday loans – CAB service will monitor lenders to make sure they follow new rules

26 Nov 2012

The Scottish CAB service is today launching a campaign to make sure people don’t fall victim to crisis debt through payday loans.

Leading Payday Lenders have combined today to launch a new voluntary charter which they say will govern their conduct and make the industry fair. The charter can be read using the links below.

CAS Chief Executive Margaret Lynch says,

“First of all, we welcome the fact that the lending industry is working to get its act together and establish a proper set of rules to ensure people get a fair deal. This is something we have long been calling for. The way payday and short-term lenders currently operate is very poorly regulated, and as a result we see huge numbers of people getting into unmanageable debt. 

“But any voluntary code is only going to work if it is actually followed. So today we are launching a campaign help make this charter a success. We are doing two things: firstly we are making sure that anyone who is taking out a loan knows exactly what their rights are under this new charter. And secondly, we’re sending a message to all payday lenders that we will be monitoring their activities very closely, to make sure they abide by their responsibilities.”

To launch the campaign CAS is today publishing a report which cites real CAB case evidence to illustrate the problems that exist at the moment, and show why the code is necessary. This report can be downloaded below.

For more information please contact Tony Hutson on 0131 550 1010 or 07774 751655.

ENDS

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