Tighter Rules On Loan Lenders Welcomed
Tuesday March 12 2013
THE chief executive of Barnsley Citizen's Advice Bureau has welcomed plans to tighten the rules for 'payday' loan lenders.
Pat Heath said the government's announcement to bring in stricter rules for high-cost, short-term lenders was long overdue.
Last year one Barnsley family ended up taking out 16 payday loans – with huge monthly repayments of £2,200.
The largest 50 payday loan firms now have 12 weeks to change their practices or risk losing their licences.
Mr Heath said: "Payday loans are proving to be toxic for many people in Barnsley and unscrupulous lenders are ramping up costs, particularly when customers cannot afford to repay and are emptying bank accounts to claw back loans, leaving people without a penny to their name."
The lenders are often said to give money without credit checks, so many people are given loans that they're realistically unable to pay back.
Pat Heath said the government's announcement to bring in stricter rules for high-cost, short-term lenders was long overdue.
Last year one Barnsley family ended up taking out 16 payday loans – with huge monthly repayments of £2,200.
The largest 50 payday loan firms now have 12 weeks to change their practices or risk losing their licences.
Mr Heath said: "Payday loans are proving to be toxic for many people in Barnsley and unscrupulous lenders are ramping up costs, particularly when customers cannot afford to repay and are emptying bank accounts to claw back loans, leaving people without a penny to their name."
The lenders are often said to give money without credit checks, so many people are given loans that they're realistically unable to pay back.
Leave a comment
comments powered by Disqus
Other Latest News
AUDITIONS for the ITV show The Voice 2019 are being held at The Garrison on…
COSTA coffee has been refurbished and reopened as a flagship store. There are only 8…
TOBY Tyke, Barnsley council and volunteers spent Friday April 20 clearing up Barnsley centre. The…
A TEN year old dancer has been shortlisted to win a 2 hour dance workshop…
BRITAIN'S Got Talent finalist Boogie Storm will be performing in front of the Town Hall…
A 35-YEAR-OLD is due in court on Friday April 20 charged with a string of…
HUNGRYHOUSE, the online takeaway service, is closing down after 12 years. The online service have…
A SCHEME has been launched in Barnsley care homes to help residents in the event…
PLASTIC straws and cotton buds may be banned in the UK as part of a…