Lawyer Warns On Payday Loans
A former lawyer at the Financial Ombudsman Service has warned that payday loans companies are failing to assess the credit worthiness of applicants and that the law regulating this type of credit is inadequate.
James Ward, associate at Thomson Snell & Passmore,said “There is no time to assess whether they should be lending to the borrower at all, and this is virtually impossible without a face-to-face transaction.”
A former lawyer at the Financial Ombudsman Service has warned that payday loans companies are failing to assess the credit worthiness of applicants and that the law regulating this type of credit is inadequate.
James Ward, associate at Thomson Snell & Passmore,said “There is no time to assess whether they should be lending to the borrower at all, and this is virtually impossible without a face-to-face transaction.”
His warning comes as research from housing charity Shelter revealed almost one million people used a payday loan to cover mortgage or rent payments in the last twelve months.
For the full story click here and for Simon Read's comment piece, click here.
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