Citizens Advice Scotland has welcomed reports that complaints to the ombudsman have doubled in the last year. The Financial Ombudsman Service figures reflect a more assertive consumer, unwilling to accept poor practices from payday lenders. CAS has called on other victims of rogue lenders to speak out, report their experiences and to seek help.
CAS Chief Executive Margaret Lynch says,
“Last year we published evidence that most payday lenders in Scotland were failing to stick to agreements to treat their customers fairly. Scottish CAB advisers continue to see over 100 people every week with a complaint about a payday lender. It’s clear that the actions of many payday lenders are getting more and more Scots into the misery of spiralling problem debt.
“So it’s good news that people are becoming more willing to report rogue lenders, and we encourage people to continue to come forward and report bad practice, as well as seeking help with their debts.
"We have published a simple guide setting out what your rights are when you borrow money from a lender, and also what the lender’s responsibilities are to you. It’s important that people know those rights and stand up for them. The CAB can help you do both of those things, and can also give you free, confidential advice on how to manage your debts.”
YOUR RIGHTS, THEIR RESPONSIBILITIES
In 2012 the payday loan industry signed up to a new charter whereby they made a number of promises about their future conduct.
• Did the lender make it clear how much it would cost you in total to repay the loan?
• Did the lender make it clear how you would repay your loan?
• Did the lender check your personal finances to see if you were able to pay back the loan?
• Did the lender tell you that a payday loan should not be used for long term borrowing?
• Did the lender tell you what to do if you had a complaint?
If your answer is ‘no’ to any of these questions, then your lender has not kept its side of the deal.
Help us stop bad practice by reporting them to our consumer adviceline: 03454 04 05 06.
The CAB service can also help you with your debts.