- Posted by: Valerie Vaz MP
- Category: News
Valerie signed the Charter to Stop the Payday Loan Rip-Off and called for tougher regulation of payday lenders.
“I have signed the Charter because payday lenders are exploiting and misleading millions of people, trapping them in spirals of debt. The Charter calls for proper regulation and enforcement of payday lenders to stop them from giving loans to those who can’t realistically afford to pay them back.”
“I am pleased that the Financial Conduct Authority has proposed some measures to safeguard borrowers, however, they should go further and back the Charter. The Charter is supported by some of Britain’s biggest debt, consumer and anti-poverty organisations, including Which? who are calling the FCA to adopt a cap on default fees and penalty charges and ensure that lenders provide clear and transparent information. The FCA should also make sure that there are no loopholes to their proposed cap of two rollovers for a payday loan.”
“The FCA can also protect consumers from payday loans by prohibiting lenders from draining the money of their borrower’s accounts without their permission through a Continuous Payment Authority (CPA) and instead requiring them to give advance notice. If we are to stop pay-day lenders taking advantage of the one million households that use payday loans each month then these measures must be adopted by the government.”
The full text of the charter can be found here: change.org/paydayloancharter