Clamping down on irresponsible payday lending by educating would be applicants on the pitfalls associated with taking out payday loans and imposing stricter lending measures.
Cardiff, UK -- (SBWIRE) -- 10/24/2013 -- The freshly started educational campaign by the Citizens Advice Bureau aimed towards payday loan users has been officially confirmed as the new tool in educating the people about the hidden dangers in this kind of money lending. This program was adopted at the last annual meeting where CEO Jan Rothwell and Mr. Sean Murphy, the manager of West Berkshire Council’s Trading Standards have agreed upon the necessity of this measure.
Soon after that, the Financial Conduct Authority which is responsible for monitoring all financial institutions and companies that provide these kinds of services to clients such as Wonga, QuickQuid, Payday Express, Lendingstream and fastquid to name but a few of the UK's most renowned and widely used payday lenders, were revealed new plans to implement more rigorous measures towards the payday firms on who can get these payday loans, suggesting that every client must pass extensive checks in order to receive this kind of loan.
"This is a very big problem in our society today, there are many people that have up to ten separate payday loans at the same time and they can't keep up with the payment which encircles them in even bigger debt which they cannot repay."- said Mr. Jan Rothwell in support of the new program.
He also added:" The deadened labyrinth of payday loans has become nightmare to many people who got trapped in this scheme, borrowers that have used these loans have described them as the worst kind of financial exploitation that can engulf the whole family into misery and poverty."
Credit unions have allied their forces with the city council and CAB in the battle against these payday loan firms, the Newbury library will be the meeting point for these informative lectures where citizens can be educated about their consumer rights when using payday loans and also the available alternatives which can be far better solution to their needs.
This program will be focused on some aspects of these payday loans that are very foggy to the common people, how big can the interest rates become, who can afford these loans, is there possibility to cancel the loan, how to prevent fraud and extortion.
“Pay day loans may be legal, but there are reports that some firms are breaking the law severely and we will investigate every case, we have numerous complaints of borrowers saying that they are deceived and harassed by some of these payday loan lenders, our job is to protect the consumer and we will do our best to do so." :said Mr. Sean Murphy in regards to his decision to support the new campaign.
73% from the 160 complaints send to the Financial Ombudsman between April and June about these payday loans where ruled out in favor of the client, these facts where brought up by the newest CAB research on national level. This same research showed that in the period from January 1 until June 30 this year there where 668 complaints in relation to these payday loans and in 77% of the cases there was enough evidence to start a case and investigation about malpractice.
Financial Conduct Authority CEO, Martin Wheatley, announced the beginning of the end for the uncontrolled reign of the pay day loan firms, he said:" The clock is ticking, payday loan lenders will be regulated properly, it’s just a matter of time when the new, harsher regulations will be implemented and this is a fact."
This new educational campaign will be active until January, there is also a short educational film about this topic on the site of CAB named: ‘Know Your Rights' www.adviceguide.org.uk
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