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Payday Loans - 'no hiding place' for rogue lenders

Citizens Advice Scotland has welcomed the latest rules for payday lenders, announced today by the Financial Conduct Authority (FCA) (FCA press release appended in full below). 

Citizens Advice Scotland’s Chief Executive Margaret Lynch says, 

“Scottish CAB advisers see 150 people every week now who are struggling with payday loans – often because of poor practice by payday lenders. The lending industry had promised to put its house in order last year, but our research found that many lenders in Scotland were continuing to flout their own rules. So it was clear that tough external regulation was necessary. 

“It should not be too much to expect that lenders operate fairly. That includes making sure borrowers don’t take on debts they are unable to control, and offering them genuine help when they do get into difficulty with re-payments.   

“We want to see a market that allows lenders to make a fair profit and offers sensible borrowing options to consumers. But there must be no hiding place for lenders who flout the rules and operate unfairly. These latest actions from the FCA are another step forward for consumers 

“We will continue to press for further safeguards. And meanwhile, anyone who needs debt advice can get free, confidential help from their local CAB or from our helpline on 0808 800 9060.”

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