The majority of payday lenders must abide by improved codes of conduct from today.
In response to the new standard, Which? executive director Richard Lloyd said:
“The revised code largely amounts to a re-brand of many of the existing rules that have been flouted by some unscrupulous lenders for years. If this code is to be worth the paper it’s written on, far more needs to be done to enforce the rules and protect vulnerable people who are getting caught in a downward spiral of debt.
“We welcome more robust affordability checks but also want to see a cap on the amount that lenders can charge for defaults and an end to extortionate fees. The Government must also ensure the Office of Fair Trading has the resources it needs to properly police the industry.”