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Citizens Advice has called on the Office of Fair Trading (OFT) to suspend the licences of four payday lenders which it claimed are operating “deceitful” business practices. The charity has provided the regulator with a dossier of evidence that reveal the payday lenders to be acting unfairly, exacerbating debt problems and causing “significant distress”. From 19 February, under new powers the OFT will be able to immediately suspend the consumer credit licence of firms if it is deemed urgently necessary to protect consumers.
Gillian Guy, chief executive of Citizens Advice, said: “The OFT must take immediate action to investigate and suspend these companies. These firms pose a real risk to people looking to get a short term loan to help tide them over. “Our evidence shows these lenders are behaving as a law unto themselves. Excessive fees and charges are escalating debts and people are worried sick as companies bombard them with texts, emails and phone calls often overstating their debt collection powers.”....Read more here
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Citizens Advice has sent evidence to the Office of Fair Trading (OFT) revealing the firms were acting unfairly and causing 'significant distress'. Payday lenders offer high interest, unsecured loans, typically repaid within 30 days. From February 19 the OFT will have new powers to suspend the consumer credit licence of companies immediately in order to protect consumers from, for example, business practices which are considered to be "deceitful, oppressive or unfair". Gillian Guy, chief executive of Citizens Advice, said: "Our evidence shows these lenders are behaving as a law unto themselves.......Read more here