Payday lenders publish revised codes of practice
The Government’s response to the BIS Select Committee Report into Debt Management laid out new commitments for payday and short-term loan providers in an attempt to provide greater protection for consumers. The trade associations for payday lenders have responded with revised codes of practice, published today.
Louise Brittain, R3 Council member, comments:
“Among other things, payday lenders have agreed to increasing transparency for customers about how much their loan will cost and agreed to offer help to customers in financial difficulty, but there is still more to be done. As increasing numbers of people are struggling with their personal finances more are turning to payday lenders as a credit facility. For this reason, we think payday loan providers should be regulated to the same standard as other lenders. We also believe that there is merit in looking into stricter advertising of payday loans, with prominent ‘health warnings’ about the true cost of the loan.
“We agree with Business Minister Norman Lamb’s comments that these new codes of practice should not be the end of the story, efforts still need to be made within the industry to continue to root out bad practice.
“Consumers should be made aware that there are options available to them if they are facing financial difficulty. Recent R3 research found that 54% of people are worried about their current level of debt and of those, 9% said it was a payday loan that was worrying them. It is vital that people do not use payday loans as a long-term credit facility, and if they are worried about their finances, that they seek regulated advice.
For further information please contact:
Antoinette Huka, Communications Officer
T : 020 7566 4217 m: 07825 679 462 e: firstname.lastname@example.org
Will Black, Communications Manager
T : 020 7566 4215 m : 07917 422 485 e: email@example.com
Notes to editors:
- R3 is the trade body for Insolvency Professionals, and is made up of 97% of the UK’s Insolvency Practitioners from all over the UK.
- R3 comments on a wide variety of personal and corporate insolvency issues. Please contact the press office, or see www.r3.org.uk for further information.
- R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by one of nine recognised professional bodies.
- R3 stands for ‘Rescue, Recovery, and Renewal’ and is also known as the Association of Business Recovery Professionals.
R3 Press Office