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Payday Loans

Citizens Advice Bureaux in Scotland are dealing with over 100 cases involving payday loans every week. These cases along with the results of a survey we have carried out with consumers across Scotland show, payday lenders are not tackling the problems effectively themselves. Below are ten recommendations that Citizens Advice Scotland is making that will help mitigate some of the worst impacts of irresponsible payday lending.


Payday Lenders

  • Introduce a real-time credit recording or data sharing system to ensure multiple loans cannot be taken out from lenders before credit reports are updated.
  • Agree to attend a CAS round-table in 2014 where case studies highlighting breaches of the Good Practice Customer Charter will be made available to lenders.

UK Government

  • An independent total cost of credit investigation gathering economic experts to consider how much is too much with regard to how much is charged per £1 borrowed and with the ability to make recommendations to the UK Government based on powers in the Financial Services Act.

Financial Conduct Authority

  • Automatically fine Payday Lenders, with compensation for borrower, for each and every breach of FCA consumer credit rules on Continuous Payment Authorities.
  • Limit the number of attempts a payday lender can attempt to use a CPA on a customer’s bank account.
  • Limit to one ‘roll over’ any loan held by a customer of a pay-day lender.

Scottish Government

  • All high-school 1st years to receive a starting deposit in a Credit Union account to encourage prudent saving and membership of local Credit Union’s.

Scottish Local Authorities

  • Ban access to payday loan websites on council computers in libraries and community centres

Banks operating in the UK

  • To provide training for all staff on the rights of consumers to cancel a CPA on their account.

Glasgow 2014 Managing Authority

  • A public commitment to no payday loan advertising at the Commonwealth Games