“More needed to counter the ruthless marketing of loans to people who need help managing their finances” Debt Advice Foundation

Payday lenders are to be forced to make details of their loans available to price comparison websites, to encourage greater competition.  In its final report on the payday lending market, the Competition and Markets Authority says that clear comparisons will help borrowers get a better deal.

Payday lenders are to be forced to make details of their loans available to price comparison websites, to encourage greater competition.  In its final report on the payday lending market, the Competition and Markets Authority says that clear comparisons will help borrowers get a better deal.

Commenting on the report, Debt Advice Foundation chief executive David Rodger said: “These recommendations are welcome in so far as the CMA investigation has shone a clear light onto the workings of this industry and the findings are designed to bring it into the mainstream.

“However, we are still seeing nothing that balances the ruthless marketing of loans to people who need help with managing their finances, not extra debt. 

“We were pleased to see the CMA unmask the role of lead generators who were operating virtually unchecked and were causing huge distress.

“But these companies have not gone away.  Yes, they must now be clearer about who they are and what they do, but the selling of contacts for often vulnerable people has not stopped.

“We are hearing, for example, about online gambling companies accessing these same lists and targeting people who are already struggling with debts.

“The Financial Conduct Authority’s recent paper on the fair treatment of vulnerable people was a real starting point, and should be followed by real controls.”

“There is still a great deal to do before consumers are properly protected from dangerous and damaging practices.”

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