Citizens Advice demands OFT to suspend 4 PDL Companies?

[toptrapper]

http://www.guardian.co.uk/money/2013/feb/15/force-payday-lenders-stop-trading

 

Citizens Advice is urging the Office of Fair Trading (OFT) to use new powers to suspend immediately the licences of four payday lenders which it believes have been "causing significant distress" to customers.

 

The powers, available to the OFT from 19 February 2013, allow it immediately to suspend the consumer credit licence of companies to protect consumers, for example if firms are using business practices that are deceitful, oppressive or unfair. Currently lenders can continue trading as normal while being investigated.

 

Citizens Advice refused to name the four payday loan firms involved, saying it did not want to affect any investigation, but it did state that two are household names.

 

The problems uncovered by the charity include: firms charging excessive fees; continuing to take money when debts have been paid off; firms preventing customers from making repayments online or over the phone, then slapping them with a charge for late repayment.

 

The charity also said that the firms had been harassing customers with repeated telephone calls, text messages and emails, as well as chasing people for debts on loans when the individual had not applied for a loan in the first place.

 

Citizens Advice's chief executive, Gillian Guy, called on the OFT to take immediate action to investigate and suspend the companies involved.

 

"These firms pose a real risk to people looking to get a short-term loan to help tide them over," she said.

 

"Our evidence shows these lenders are behaving as a law unto themselves. Excessive fees and charges are escalating debts and people are worried sick as companies bombard them with texts, emails and phone calls, often overstating their debt collection powers."

 

In a statement the OFT said: "The OFT will now be considering this letter but it is not appropriate to discuss its detail any further at present.

 

"We would like to highlight that the new power to suspend can only be used in the most serious cases of immediate harm, but we won't hesitate to use it where cases fit that bill. In addition, we expect to report within the next few weeks on our ongoing review into the payday sector."

 

Citizens Advice said it is "gathering evidence" of other lenders who are also found to be contravening OFT guidance. The charity said its Citizens Advice Bureaux in England and Wales advised 2.1 million clients with debt problems between April 2011 and March 2012 – 31% of the total problems dealt with.

[rodgerramjet]

Really interesting thread. I do hope they get them suspended and it would be good to know who the companys are.

 

Im about to default on loans as well as its time go get off the merry go round. Never again will use them.

[Jamie Kingston]

does anyone know which 4 they are???

[renegadeimp]

After doing some research i have a fair idea on them. But cant say on CAG unless CAB/OFT announce first.

[rodgerramjet]

Where did you find the Info? Can you pm me please very I retested to know who they are

[renegadeimp]

Just do a few google searches. IT isnt hard to work out who they companies are. The reason the companies havent been announced is because until they have been investigated and found "guilty", they havent done anything wrong. If they were accused of something and it was announced; if they suffered declining business after the announcement, they could claim compensation etc. It's a lot better to be thorough and then announce then just yell accusations everywhere.

[Jamie Kingston]

who do you think they are? Capitall finance one, toothfairy ----???

[rodgerramjet]

Had a look on google but don't see anything, I'm sure ill have a good guess at who they are when I reached my own D-Day this month. Can't wait to be rid of these company's but I stress my own fault, if I had never used them I wouldn't be reading this thread

[renegadeimp]

Its not Toothfairy and that group of companies. They are already under Deep investigation and the OFT is already collecting witness statements, and have been doing so for a while now.

[fletch70]

Well my guess is that the household names would be an American company and from the amount of phone calls people seem to receive a company that has a high st presence.

[Heropanda]

I'd be very interested to know who they are too, when are we likely to find out and what impact will it have to someone who has an outstanding loan/amount with them?

 

I've had particular trouble with Payday Express, Capital Finance One and 247 Moneybox so i hope its one or more of them!

[toptrapper]

Not sure. Wouldn't want to prejudge their announcement but a read through of this website suggests complaints seem to be centred across a small(ish) group of companies. Time will tell!?