New code of conduct for payday lenders

[jon1965]

This is a new code of conduct that SHOULD work along side the OFT code on debt collection that has just been updated and the various codes of conduct that are published by the various associations.
I have read it and to be honest can't see anything new in there

PDandSTL_Addendum_Lender.pdf

Lets hope it does make a difference

[winjas]

Re: New code of conduct for payday lenders

Forgive me, if i dont hold my breathe with Payday scum..

[jon1965]

Re: New code of conduct for payday lenders

Me neither . I stole the attachment from another website but thought it was important to post it. If no one knows about it no one can take them to task

[SaltnVinegar]

Re: New code of conduct for payday lenders

Its already not 'worth the paper its written on'. Consider the following extracts:

Explain clearly how continuous payment authority works and how payments (including the possibility of part-payments) will be deducted from the customer’s bank account. This will help the customer decide whether this type of repayment is acceptable to them before they take out the loan.(2)

Make clear to the customer their rights to cancel a continuous payment authority before they take out a loan. The lender will remind the customer that if they cancel, they will still owe any outstanding debt and will need to provide an alternative method of repayment on the due date to avoid going into default. The lender will give the customer a contact point should they want to cancel the payment authority directly with the lender.

So they talk about the possibility of 'part payments'. In other words, taking multiple smaller payments until the customers bank account is empty.

The second paragraph is exceptionally misleading. It states they the lender will give the customer a contact point should they want to cancel the payment authority directly with the lender.

This gives the impression (and no doubt many lenders will do the same), that customers will have to contact the lender to cancel the recurring payment authority.

Customers should now be able to contact their bank and cancel the CPA, it does NOT require contact with the lender (although, still, many banks will fob you off and tell you otherwise).

Reading through this 'charter' its waffle, basically regurgitating payday lenders legal responsibilities and how they should conduct themselves aligned to OFT Good Practice Guidelines which we already know they ignore.

This 'code of conduct' is nothing but marketing spin, put together by the industry, so they 'can be seen' to be 'demonstrating' they are trying to change the way they work.

The 470+ emails I have received since 1st December from payday loan companies offering 'cash for christmas' show that this code is nothing but bovine excrement.

[jon1965]

Re: New code of conduct for payday lenders

It is possible that it will give them more rope to hang themselves. An example is their promise to be responsible lenders ha ha. How can their model run if they only lend to people who have a credit rating that will demonstrate they can afford to pay.
I do not believe for one minute that they will change without a big stick.
Of course I have heard rumours that things are afoot, however I think they are coming from people who have severe insecurity problems so have to make them selves sound big by saying such things as "we have been in discussions with the OFT" and "believe me this will make a difference as things are afoot"

[ken100464]

Re: New code of conduct for payday lenders

Its already not 'worth the paper its written on'. Consider the following extracts:


This gives the impression (and no doubt many lenders will do the same), that customers will have to contact the lender to cancel the recurring payment authority.

Customers should now be able to contact their bank and cancel the CPA, it does NOT require contact with the lender (although, still, many banks will fob you off and tell you otherwise).

Exactly. This is the sort of place FOS should be making instantaneous rulings but will hide behind the PPI workload.

If you have told your bank to stop a CPA it should now no quibbles.

If they decide to honour a cancelled CPA to a loan shark dressed up as a payday lender then it should be an automatic return of your account to where it should be plus a hefty fine. No quibbles and no waiting bloody months.

A few of these automatic fines would stop this odious practice dead in the water.