The Office of Fair Trading (OFT) is taking action against payday lenders who are breaking the guidance on online advertising in the run-up to Christmas.
the Christmas period is the busiest time of the year for payday lenders, with many people taking out a payday loan simply to pay for Christmas. The OFT has found that some of these companies were not checking whether customers could actually afford to pay back their loans. A number were foun to be unclear when outlining the charges for going into arrears, the terms of the loan and failed to fully explain the contract.
Top of the OFT's list of worries is the misuse of continuous payment authority, which allows a lender to take funds from a borrower's bank account even if the account is overdrawn.
Next comes the rolling over of loans which can result in debts escalating out of control. But irresponsible advertising and selling tactics have also become a major worry.
If you have fallen into debt through the use of payday lenders contact us now for no-obligation advice.
