Cost Review New Customer Charter For Payday Lenders

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The short-term loan industry has been hit with a new customer charter, comparison experts at Cost.co.uk have examined the new guidelines governing payday loans.

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For some time now, financiers have complained that these loans were deceptive and misleading, but the new guidelines should bring greater clarity and openness

The payday industry has received a lot of negative attention in recent months after a number of lenders were found to be employing bad practices. Hopefully that is all in the past now, as a new set of guidelines has been produced by four main trading associations; the Finance and Leasing Association (FLA), British Cheque Cashers' Association (BCCA), the Consumer Finance Association (CFA), and the Consumer Credit Trade Association (CCTA).

The Good Practice Charter and Addendum, set to be introduced by November 26th this year, is a revision of the short-term loan industry’s existing Codes of Practice. The new charter was produced to increase the transparency and consumer protection for payday and short-term loan customers, following discussions with the Department for Business, Innovation and Skills.

Comparison experts at online website Cost.co.uk specialise in sourcing their customers all financial products, including short-term and payday loans. The team of professionals have been reviewing the new customer charter and what it will mean for the short-term loan industry.

Cost’s Chief of Finance, shares her opinion on the new charter:

“The Good Practice Charter and Addendum is a much-welcomed step forward for the payday loan industry. For some time now, financiers have complained that these loans were deceptive and misleading, but the new guidelines should bring greater clarity and openness. The charter should also provide borrowers with greater peace of mind and reassurance when they are considering taking out a short-term loan.

Based in Essex, Cost is one of the UK’s leading price comparison sites. Allowing their online customers access to companies offering a range of insurance, financial and travel services, the firm specialise in providing a personal experience. Founded in 2012, the agency has a trusted reputation for sourcing the most ideal policies at affordable prices.

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Ben Austin
Cost
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