An influential cross-party group of MPs and some of Britain’s biggest debt, consumer and anti-poverty organisations – including Which?, Citizens Advice, StepChange Debt Charity, Church Action
on Poverty, and the Centre for Responsible Credit have launched the ‘Charter to Stop the
Payday Loan Rip-Off’ in Parliament.
The 'Charter to Stop the Payday Loan Rip-off' was being launched in response to the Financial Conduct
Authority’s recent proposals for regulating payday lenders. An e-petition has been launched where people can back the Charter and add their voice to the growing calls for tougher regulation of payday lenders.
The Charter is supported by MPs from the Labour Party, Conservatives, Liberal Democrats, SNP,
DUP, Alliance Party, SDLP, Green Party and Plaid Cymru.
The Charter calls on lenders to:
• Stop giving loans to people who can’t realistically afford to pay them back
• Stop repeatedly rolling over loans and creating spiralling debt
• Stop hidden or excessive charges
• Stop raiding borrowers’ bank accounts without their knowledge and leaving them in hardship
• Stop irresponsible advertising and instead provide clear and transparent information
• Require lenders to promote free and independent debt advice, and ensure they co-operate with other services to help people get out of debt.
Justin Tomlinson MP said: "This Charter is an important step in reforming this industry so that it works in the interests of consumers. The payday lending industry has as its customers some of the most vulnerable
consumers in society and it is vital we make the changes needed to protect these consumers and
empower them to make informed decisions that work in their best interests".
To sign the e-petition showing your support for the Charter, click here
