CFA response to Citizens Advice report

Russell Hamblin-Boone, chief executive of the Consumer Finance Association said:

“It is unfortunate this report fails to acknowledge the significant changes in the regulated short-term lending sector and we don’t recognise the picture of the industry it paints.

“All CFA members carry out rigorous affordability checks before issuing a loan to a customer. So we must be careful not to assume that because someone cannot remember being credit checked it did not happen. Short-term lenders are the only firms to use real-time information from credit reference agencies and affordability models based on the income of prospective borrowers. These measures ensure that only individuals who can afford to repay are approved for credit.

“However, we are concerned that some less scrupulous firms could be breaking the strict rules on lending. If true, this is a matter for the FCA and just as we report any poor practice, we would encourage Citizens Advice to present its own evidence to the regulator.”