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Citizens Advice welcomes new customer charter on payday lending

25 July 2012

Citizens Advice welcomes new customer charter on payday lending

Gillian Guy, Chief Executive at national charity Citizens Advice said:

"We welcome this much-needed customer charter on payday lending and look forward to its implementation as soon as possible. The test will be the extent to which it actually changes practice.

At CAB we see four times more people coming to us with payday loan problems compared to a couple of years ago. These problems are usually from people already in long-term financial difficulty with other debts, using payday loans as a desperate way to try and stay afloat.

As more and more people are being offered loans they can'tafford to repay and put onto rollovers with huge interest rates and charges, we hope that this charter ensures they get better protection and clearer information before deciding whether a payday loan is appropriate for them.

We will be monitoring the charter's impact closely as vulnerable consumers struggle to cope with increasing money problems."

Notes to editors

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales see www.citizensadvice.org.uk
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality. For online advice and information see www.adviceguide.org.uk
  3. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 6.9 million problems from April 2011 to March 2012. For full 2011/2012 service statistics see our quarterly publication Advice trends
  4. Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable (nfpSynergy’s Brand Attributes survey, May 2010).
  5. Most Citizens Advice service staff are trained volunteers, working at around 3,500 service outlets across England and Wales.

Citizens Advice