Richard Lloyd, Executive Director, Which?:
“This falls far short of expectations. It has taken the industry months to agree to the most basic of codes, and largely amounts to a rebrand 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 credit checks but also want to see a cap on the amount that lenders can charge for defaults and an end to extortionate fees. We also want the Government to ensure the Office of Fair Trading has the resources it needs to properly police the industry.”