Customer charter launched by Payday lenders
The lenders of payday have given their agreement to a new code of practice in the form of an attempt to provide even greater protection to the vulnerable customers from the matter of hidden fees, but the consumer groups are not very much impressed from this step.
Under the good practice charter, of four trade bodies, which is a representative of almost 90 per cent of the lender of the payday have given their commitment to make charges as well as fees more transparent than before and also to provide help to those people who are facing financial difficulty.
The lenders have also given their agreement to provide clear and proper information in what way does a payday loan works as well as give an illustration of the costs for each 100 pounds that will be borrowed, which is also going to be inclusive of the charges and also the fees.
This sort of an agreement means that lenders are going to freeze the rate of interest and the charges if a customer is in a lot of financial difficulty and is making payments under a repayment plan, or that after a maximum of 60 days of non-payment.
Along with this the customers will also be required to under-go an affordability assessment as well as credit vetting in order to make sure that they can pay the loans which they have taken back as well as will not at all be pressurized into taking out a loan or rolling over the date of repayment.
Nevertheless inspite of all this, the consumer groups had put up a warning that this the new charter did very little to address the issues that are associated with the payday loans. Joanna Elson, who works as the chief executive of the Money Advice Trust had to say that it is very much clear that quite a lot more should be done in order to stem the tide of the problems of the payday loan which are faced by more and more people all across the United Kingdom on a day to day basis. Apply now with loan in minutes @ www.loaninminutes.co.uk and a get easy loan.
The figures from the National Debtline,have to show that for the first half of the year 2012, it received around 9,500 calls to get help for the payday loans. This number is an increase of 116 per cent since the year 2011 as well is also accounted for more than 10 per cent of all callers in that very period.
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