Commenting on today’s report from Which? into payday lending, Russell Hamblin-Boone, Chief Executive of the Consumer Finance Association, said:
“Which?’s report highlights the need for more responsible lenders, such as the CFA’s members, to work closely with government and the regulators to stamp out practices which are detrimental to consumers and damage the reputation of the whole industry.
“However, the Which? report shows a very different picture to the one that is seen by our members. Similar independent research shows high satisfaction levels (93%1) and the vast majority of customers paying back their loans on time. As a result I will be contacting Which? to discuss their report in detail and talk about the issues they have raised and what lessons we can learn for the future.
“Responsible lenders have no desire to lend to people that cannot afford to payback their loans; it is bad for the consumer and bad for the lender. We have worked extremely hard to devise and implement the new Good Practice Customer Charter, which comes into force on 26th November. The Charter means that customers can expect greater transparency with clear explanations of all charges; robust affordability assessments and significant help for those that do get into financial difficulty after they have taken out their loan. Those are the things that responsible lenders are committed to and consumers should ensure they only borrow from lenders that have signed up to the Charter. We advise that you check to see if they are a member of the following trade associations BCCA, CCTA, CFA or FLA before you take out a loan.
“We will, of course, continue our extensive efforts to work with the Government and regulators to set the high standards that the rest of the industry should follow.”