Big Drop in Payday Loan Complaints

The Citizens Advice Bureau BBC News – Payday Loan Complaints Drop a near 50% drop in complaints about payday loan companies over the last 12 months.

The report credited the work of the FCA since April 2014 in tightening up on regulations and their supervision of payday loan companies.

FCA Introduce New Rules

At the start of 2015 the Financial Conduct Authority (FCA) introduced new rules to protect consumers from harmful business practices adopted by fee-charging brokers.

Payday Pig never charges a fee for the service we provide and we never take money from your account. However some brokers do charge a fee, and some mislead the consumer about these fees.

“The rules will ban credit brokers from charging fees to customers, and from requesting customers’ payment details for that purpose, unless they comply with new requirements ensuring that customers are given clear information about who they are dealing with, what fee will be payable, and when and how the fee will be payable. The rules come into force on 2 January 2015.”

Happy New Year – 2015: A New Payday Pig!!!

To mark 2015 we have launched a New Look Payday Pig.

The new year heralds new changes for the payday loan industry, with fairer pricing for consumers. More changes are in the pipeline and we aim to be at the forefront of these. More news to come soon…

The 2015 Payday Loan Rules Made Simple

Great news for customers of Payday Loans! In November 2014 the Financial Conduct Authority confirmed the following change to the rules governing payday loans:

From 2 January 2015, no borrower will ever pay back more than twice what they borrowed, and someone taking out a loan for 30 days and repaying on time will not pay more than £24 in fees and charges per £100 borrowed.

In line with this, all the lenders on our panel have lowered their interest rates and have confirmed they operate within these new rules.

How will the FCA affect You?

From the 1st April the FCA (Financial Conduct Authority) took over the duties of regulating the credit industry from the OFT. In this remit they have a lot more powers than the FCA and are already making changes. Some firms have already had their consumer credit licences taken away, while others have surrendered their’s voluntarily.

Their objective is to make the high-cost credit industry consumer focused. Already we have had to modify our website to add warnings regarding the cost of credit. And our lenders are increasingly asking us to collect more information, for example we now ask for more details about your monthly expenditure, and we will soon be asking for more details. Whilst we realise this can appear burdensome, the objective is to both encourage consumers to think about how they spend their money and whether they can afford a loan, as well as helping lenders assess affordability of a loan.

At Payday Pig we are also planning changes which will make us more consumer facing. More to be announced…