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- Tooth Fairy Finance staff pretended to be bailiffs and threatened to enter customers' homes to seize belongings
- Penalty charges imposed by lenders on borrowers who miss a payment may be illegal, says Which?
- Some lenders charge as much as £30
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Three payday lenders accused of abusive behaviour, pretending they were bailiffs and taking payments once loans had been settled have been probed by the financial watchdog. Tooth Fairy Finance, Easy Finance Club and Community Pay Day were being investigated by the OFT after a litany of ‘alarming’ practices were reported by the consumer body Citizens Advice.
These included pretending they were bailiffs and threatening to enter customers’ homes to seize their belongings, and refusing to accept payment plans from people in debt or bureaux acting on their behalf. All three went into administration in November before the OFT was able to report. The revelation comes as the consumer watchdog Which? warned rip-off penalty charges imposed by lenders on borrowers who miss a repayment may be illegal......Read more here
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