DBIS has welcomed revised Codes of Practice for the four trade associations representing the payday loan industry. The associations have committed to:

  • making available to the public at their members' premises a Good Practice Customer Charter;
  • better transparency concerning loans;
  • freezing charges and interest after 60 days of non-payment or if the customer in financial difficulty agrees to a reasonable repayment plan;
  • robust credit and affordability assessments; and
  • compliance monitoring, both through members having to file reports with the trade associations and through being subject to periodic independent visits.

(Source: Payday Lenders Make Progress Protecting Vulnerable Borrowers, Addendum to Industry Codes of Practice and Good Practice Customer Charter)