Too many payday lenders are still failing to be fair to customers who have fallen into arrears, according to the Financial Conduct Authority (FCA).
The regulator found "serious non-compliance and unfair practices" in all the firms it examined. In a few cases, it found that some customers were being pursued by collection agents, contrary to the rules. However, the FCA also said that many firms had improved their behaviour. A spokesman for the payday lenders themselves also said that many of them were "on a clear path of improvement". As part of its ongoing investigation, the FCA found that some lenders were:
  • failing to recognise customers in difficulty
  • not directing people to free debt advice
  • failing to investigate customer complaints
  • engaging in misleading practices to get payments from customers
  • wrongly adding fees and charges to bills

In the case of three particular lenders, customers who had fallen behind with payments had shown medical evidence of why they could not pay. The rules say that such customers should be given a breathing space, if they are working with a debt advisor. But the FCA discovered that some such borrowers were still being pursued by debt collectors.....Read more here