Citizens Advice calls for firm action against irresponsible payday lenders
- Published on Friday, 31 May 2013 10:47
- Posted by Vicki Mitchem
Citizens Advice is calling on the Office of Fair Trading to ban payday lenders who are harming consumers with irresponsible lending.
Today, the Public Accounts Committee releases their report 'Regulating Consumer Credit', which also calls for strong action against irresponsible lenders.
Gillian Guy, Chief Executive of national charity Citizens Advice, said: "I'm pleased to see the Public Accounts Committee echoing our call for swift, firm action against out of control payday lending firms.
"Our evidence reveals an industry that is acting as a law unto itself. Payday lenders are breaking 12 of the 14 promises they made in their own customer charter and driving vulnerable people into debt with irresponsible lending. We've seen people who have been given payday loans even though they have no income, are under 18 or have mental health problems.
"Citizens Advice is calling on the OFT to thoroughly investigate and revoke the licences of payday lenders which are found to be acting unscrupulously.
"Banks also need to take responsibility for their role in the growth of the payday lending market. Personal micro-loans could be a responsible alternative to payday loans."