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Payday lenders face new guidelines
Payday lenders are facing a barrage of new guidelines to adhere to as both the Finance and Leasing Association and the Consumer Finance Association gear up to launch codes of practice for the industry. On Wednesday (1 Feb) the Finance and Leasing Association (FLA) will launch a revised lending code aimed at short-term credit providers, among others, which will recommend that the number of times a short-term loan can be rolled over be restricted to three. The Consumer Finance Association (CFA) meanwhile, has said it will launch an enhanced code of conduct for its members, including eight of the nine largest UK payday lenders, which is also looking at things such as rollover limits and transparency in advertising....Read more here--: Payday lenders face new guidelinesYou must be logged in to post a comment.
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A new payday lenders' code of practice designed to give more protection to those in financial difficulty should now be fully in place. A deadline has been reached for lenders to ensure they keep to the minimum standards included in the code. This includes a limit on the rollover of payday loans, and breathing space for customers who are struggling to repay. The code comes in as regulators formally investigate some lenders.
'Significant step'
The code, put together by the Consumer Finance Association (CFA), which represents lenders, include aspects of a charter agreed with the government and other industry bodies in July. This should mean payday lenders only roll over a loan to a customer on a maximum of three occasions. There should also be a minimum of 30 days of breathing space for customers who need to get their financial affairs in order, and the immediate freezing of interest for any customer in financial hardship....Read more here: