Payday loans companies not entirely honest shock

14 August 2014

wonga ladies Payday lenders and credit services must do more to make sure they aren't misleading customers.

The Financial Conduct Authority (FCA), who took over supervision of the consumer credit market, has looked into 1,500 promotions being offered by various lenders and debt managers and general hoodlums, and has opened 227 cases into promotions that looked a bit iffy.

Unsurprisingly, payday lenders aren't particularly hot on such things as the facts, and hoodwink customers with puppets and other nonsense, while sneaking through completely unreasonable risk warnings or representative APRs.

Rules state that all promotions must be clear, fair and not misleading for consumers.

Various promotions that did not meet the new regulations include nefarious sponsored links, when someone Googles 'debt help' and is lead off to a magical world only to be mislead.

General advertising arsery where loans weren't entirely clear about their rates and credit also got a shoeing.

Clive Adamson, who is a director of supervision at the FCA, said: "It is important that all firms ensure financial promotions are fair, clear and not misleading so that customers are able to make informed decisions."

"We are disappointed to see standards fall short of what we expect, particularly in the consumer credit space, four months from when we took over regulation."

"We believe that firms in this sector can do more to ensure financial promotions meet the standards we would expect and will continue to monitor performance in this area."

While the firms are all "Yes, we're sorry. It won't happen again", the regulator plans to continue monitoring them and have words should anyone fall breach again.

We'll see.

TOPICS:   Investments   Debt

What do you think?

Your comment