DBIS has published a survey showing that payday lenders are not fully complying with the standards they signed up to in 2012. Many customers reported complaints such as:
- being put under pressure to extend their loans;
- lenders not explaining the risks of extending loans;
- failure of lenders to ask about customers' finances before granting the initial loan or in relation to rollovers;
- failure of lenders properly to explain how continuous payment authorities work or how to cancel them.
The Government said the results prove the need for FCA to regulate the industry and heralded its proposed new rules for payday lenders. (Source: DBIS Finds Little Payday Lending Improvement)