Payday loan firms could face more commercial litigation

Published on 25 Aug 2010 under category: legal

Firms that specialise in high cost credit could find that they face increasing regulation after two separate reports highlighted their poor customer service.
The comparison site Confused.com has found that several companies failed to offer sufficient advice on terms, conditions and costs.
In one instance, a researcher from the site was told they could not be given details of deferral charges unless they signed up to an account.
Sharon Flaherty, from the website, said: "Confused.com has had concerns about how some payday loan companies have been operating for some time, and has voiced these concerns to the Office of Fair Trade.
"We have even been contacted by customers who have taken these types of loans and have been treated poorly by lenders when they've had repayment difficulties."
More of these firms could enter into commercial litigation, as regulators crack down on irresponsible lending practices.
A separate report from Consumer Focus said that it was vital that lenders offered more clarity on terms and conditions, especially with regard to payment failures.

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