Spotlight On: Payday loan code of practice
Payday and short-term lenders have this week launched a new set of commitments which they claim will raise standards and improve customer service.
The highlight of a range of measures is that lenders have agreed to freeze interest and charges if a customer is in financial difficulty.
The new code of practice doesn't go anywhere near far enough. There were accusations this week that lenders have targeted the unemployed and the elderly. They should agree to stop preying on the vulnerable.
Payday lenders must do much more to clean up their industry and stop encouraging people into a cycle of debt. Regulators also need to play their part to crack down on rogue firms.
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