Payday loan companies routinely fail to treat their customers fairly and often encourage those struggling to repay the debt to extend their loan, according to research from the Citizens Advice Bureau (CAB).
The CAB has called on the Office for Fair Trading (OFT), which is conducting its own probe into the payday lending industry, to immediately ban those lenders its investigation found are causing harm to borrowers. Analysing customer feedback on 2,000 payday loans from more than 110 different payday lenders - including in-depth scrutiny of 780 cases - the CAB found widespread failings among providers. Among them were that 87% failed to ask the borrower to provide documents to prove they can afford to repay the loan, and that 58% did not warn that a payday loan should not be used for lon...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
