Cash point [Mirror (UK)]
(Mirror (UK) Via Acquire Media NewsEdge) CITIZENS Advice has called for all payday loan marketing to carry health warnings for borrowers.
The charity says urgent action is needed after warning that some loan firms are draining the bank accounts of customers by using continuous payment authorities.
These differ from direct debit or standing orders and give companies more flexibility about when and how much they can take from accounts.
Payday lenders, as well as gyms, are among the biggest users of CPAs.
Citizens Advice said one in three complaints about payday lenders were related to CPAs, with evidence of money being taken without permission, or even when a loan had been paid off.
It says nine out of 10 customers affected could have grounds for a complaint about unfair treatment.
Gillian Guy, Citizens Advice chief executive, said: "People can feel powerless when unscrupulous payday lenders use CPAs to run amok in their bank account.
"Now we're reminding consumers that they can fight back."
It wants health warnings on payday lenders' websites so potential customers are fully aware before going ahead.
It is also calling for a ban on payday loan ads before 9pm and specific rules for these commercials, just like there is for gambling.
Your local Citizens Advice can give debt advice and help sort your finances. And remember, a local credit union can be an alternative credit source.
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