Citizens Advice Scotland (CAS) has launched a new campaign raising awareness of consumers’ rights in relation to payday loans.
Payday loans are short-term loans that typically have very high interest rates and they are one of the most common ways that people get into debt.
Following a range of concerns and issues experienced with the loans, many of the companies that provide them signed up to a new Good Practice Charter setting out their responsibilities when selling their products.
The Charter highlights lenders’ responsibilities in terms of informing customers of the terms of their products and the need to carry our proper credit checking to ensure the customer can afford the loan.
CAS have produced the excellent video above which highlights some of the common and lesser known facts about payday loans. They are also seeking the views of payday loan customers through a short survey to find out if providers are sticking to their responsibilities under the charter.
If you are having problems with payday loans and would like advice, please contact the Citizens Advice Consumer Service on 08454 04 05 06.