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Transcript of Self regulation: what does it really mean for consumers? Hannah Hollingworth Campaigns Officer,...
![Page 1: Self regulation: what does it really mean for consumers? Hannah Hollingworth Campaigns Officer, Citizens Advice.](https://reader036.fdocuments.in/reader036/viewer/2022070401/56649f1e5503460f94c351a8/html5/thumbnails/1.jpg)
Self regulation: what does it really mean for consumers?
Hannah HollingworthCampaigns Officer, Citizens Advice
![Page 2: Self regulation: what does it really mean for consumers? Hannah Hollingworth Campaigns Officer, Citizens Advice.](https://reader036.fdocuments.in/reader036/viewer/2022070401/56649f1e5503460f94c351a8/html5/thumbnails/2.jpg)
The problem
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And
![Page 4: Self regulation: what does it really mean for consumers? Hannah Hollingworth Campaigns Officer, Citizens Advice.](https://reader036.fdocuments.in/reader036/viewer/2022070401/56649f1e5503460f94c351a8/html5/thumbnails/4.jpg)
Examples
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The Rules
Payday lenders must:
• hold a credit licence
• follow Office of Fair Trading Guidance
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Self regulation
Good practice customer charterPayday and short-term loans
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Holding payday lenders to account
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![Page 10: Self regulation: what does it really mean for consumers? Hannah Hollingworth Campaigns Officer, Citizens Advice.](https://reader036.fdocuments.in/reader036/viewer/2022070401/56649f1e5503460f94c351a8/html5/thumbnails/10.jpg)
How it worksAnswer survey
Answer No to any questions Answer Yes to all questions
Complain? Thank you
Yes No
Making a complaint Thank you & FOS
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What we have found so far
3179 responses by the end of August 2013
Some positive results:• 80% were clear about total repayment costs• 85% were clear about how to repay their loan
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Less positive results
• 38% were asked questions about their finances and whether they could afford the loan;
• 76% had problems repaying their loan
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Of those who had problems repaying
• 18% felt the lender dealt with them sympathetically and positively
• 17% were offered a freeze on interest and charges if they made payments under a reasonable repayment plan
• Only 9% of respondents were told about the availability of free debt advice
![Page 14: Self regulation: what does it really mean for consumers? Hannah Hollingworth Campaigns Officer, Citizens Advice.](https://reader036.fdocuments.in/reader036/viewer/2022070401/56649f1e5503460f94c351a8/html5/thumbnails/14.jpg)
‘Almost sure I'll have to take another out next month to be able to afford food and heating.’
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‘They left recorded messages on my mobile
Xmas Eve, Xmas Day and Boxing Day to get
me to check my emails and then phoned me at
work demanding payment when I had already
told them I couldn't pay and had gone to a Debt
Management Company, then phoned me 10
minutes later on my mobile demanding
payment.’
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‘I’ve asked to cancel the CPA and agreed a
planned repayment schedule yet they raid my
bank account on an almost daily basis which
my bank immediately disputes and refunds.’
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What has changed?
• 19 payday lenders have left the market
• The FCA are consulting on a new rule book
• OFT has referred the payday loan industry to the Competition Commission.
• 13 payday lenders, have provided Citizens Advice Bureaux with escalation numbers
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The FCA rulebook
The consultation includes rules for:•tighter affordability checks•limits on loan rollovers•limiting the use of Continuous Payment Authorities•borrowers being signposted to free debt advice•controls on advertising
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How can we make things better for consumers now
and post July 2014?
![Page 20: Self regulation: what does it really mean for consumers? Hannah Hollingworth Campaigns Officer, Citizens Advice.](https://reader036.fdocuments.in/reader036/viewer/2022070401/56649f1e5503460f94c351a8/html5/thumbnails/20.jpg)
What can I do?
• Ask your clients to fill in our survey
• Promote our film about Neil's payday problems
• Take action against irresponsible and misleading advertising
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www.citizensadvice.org.uk/paydaylenders