Power to cap costs and limit rollovers for payday loans is long overdue
Citizens Advice responds to government plans to cap the charges for payday loans and limit rollovers.
Gillian Guy, Chief Executive at national charity Citizens Advice said:
"I am delighted that payday loans are finally under the spotlight - with the ten-fold increase in problems relating to payday loans we've seen at Citizens Advice, the issue can't be avoided.
"The power to cap costs and limit rollovers is very welcome and long overdue, but it doesn't solve the problems. However, we still need to increase the options for vulnerable customers to access cash that they urgently need. Measures to counter irresponsible and high cost payday lending must bring excluded borrowers into the mainstream, not force them further out."
Citizens Advice is calling on people who have taken out pay day loans to take part in a national survey to monitor whether payday lenders are sticking to their self-regulating charter:
Notes to editors:
- The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service 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 see the Citizens Advice website.
- 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.
- To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
- You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
- Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014 service statistics see our quarterly publication Advice trends
- Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.