UPDATE: 1 July 2014 – new rules from the Financial Conduct Authority (FCA) means that payday loan companies:
- cannot rollover an outstanding payday loan balance more than twice
- must send the debtor an information sheet with contact details for various debt advice organisations. A copy of this information sheet can be seen here
- cannot make more than two attempts to deduct money from a debtor’s bank account by means of Continuous Payment Authority (CPA) unless a rollover has been agreed.
- Must now include a prominent risk warning on all financial promotions.
All across the country people are taking action to end the downward spiral of payday loans.
Over the last two weeks, thousands of people have flocked to our website to add their voice to the campaign and ask MPs to vote for change.
Together, our efforts are making a real difference. The Government is finally clamping down on the dangers posed by payday lenders – this is action that will change things for good.
But new controls won’t come in until April 2014 and there’s no sign that problems are about to go away. So it was frustrating to see progress on the High Cost Credit Bill postponed last week – despite strong support from MPs attending the debate.
We’re all too aware of the dangers of payday loans and are continuing to campaign for change. But we need your help to keep the momentum going. Here are four things you can do right now to help…
1. Share your experience to help raise awareness of the dangers of payday lenders.
2. Promote free debt and money advice
If you’re worried about payday loan debts – or you think someone you care about is struggling– pass them our confidential helpline number (0800 138 1111 Freephone, including all major mobile networks*). Also let them know about our online advice tool Debt Remedy.
3. If you need a loan, look up your local credit union first instead
Credit Unions are likely to be far cheaper option than payday loans. You can search for your local credit union on the Association of British Credit Unions website.
4. Sign up to email updates to keep informed about next steps on the campaign!
And last but certainly not least, subscribe to our payday loans campaign email and keep up to date with the latest on the campaign and how you can get involved.
Payday loans need reform – you can help.
*Major mobile networks include Orange/EE, O2, Vodafone, T-Mobile, Three, Tesco Mobile and Virgin Mobile. Call charges from other networks may vary.