Lawyer Warns On Payday Loans | Debt Advice Foundation

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.

Helpine Logo
Helpline Callback

If you’re unable to call our free debt helpline number 0800 043 40 50 right now, you can fill in the form below and one of our advisors will call you back at a time of your choosing.

Call for FREE debt advice on


0800 043 40 50

Monday to Friday 8am to 6pm