Simon Read: Time to act as complaints about payday firms soar

Click to follow
The Independent Online

The Financial Ombudsman Service this week revealed that there has been a 75 per cent increase in the last year in complaints about payday lenders. Crucially it added that it is finding in consumers' favour in nearly three-quarters of the cases.

That shows that payday lenders are continuing to behave badly. I don't want to shut all these firms down, but I do want to curb their activities - particularly the targeting of vulnerable people through fancy television ads that promise easy money, quickly.

So I was pleased to see the UK's only poverty minister saying much the same on Wednesday. Huw Lewis, Wales' Minister for Tackling Poverty, called for a crackdown on lenders' ads, pointing out: "Many payday lenders do not comply with basic compliance requirements, such as assessing the affordability of a loan for an applicant."

The Office of Fair Trading investigation into the sector must include the views of Mr Lewis and introduce tighter controls.

Looking for credit card or current account deals? Search here