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Customer Charter gives payday customers greater rights and protection


Leading payday and short-term lenders launch a new set of commitments to further raise standards and improve customer service


Customers taking out a short-term or payday loan will benefit from enhanced protections set out in a new Customer Charter drawn up by four trade associations*, representing over 100 lenders and around 90% of the total market.


Under the Charter, lenders commit to: 

·         give clear information about how a pay day or short-term  loan works and an example of the price for each £100 borrowed, including fees and charges; 

·         not pressurise customers to take out a loan or extend (roll over) the term of an existing loan agreement;

·         carry out a sound, proper and appropriate  affordability assessment and credit vetting to check that customers can afford the loan;

·         set out clearly how continuous payment authority works and the customer’s rights to cancel this authority, so they can decide if this type of repayment is acceptable to them

·         notify customers at least three days in advance of recovering payments through a continuous payment authority;

·         freeze interest and charges if a customer is in financial difficulty and making payments under a repayment plan, or after a maximum of 60 days of non-payment.


The four trade associations are fulfilling a commitment made to Norman Lamb MP, Consumer Affairs Minister, on 24 May in which they agreed to publish a Charter, which will be implemented by 26 November and sit within or alongside their existing codes of practice.**


Speaking on behalf of all of the Trading Associations, Caroline Walton, President of the Consumer Finance Association, said:


“With more people taking advantage of different sources of finance, the Charter explains clearly how a short term or payday loan works and how much it costs. We have consulted the Government and consumer to develop the Charter, which will sit within or alongside the trade associations’ own Codes of Practice. This is an important step towards making short term lending more transparent and setting the highest standards for our customers”.



For more information, or for interviews, please contact Richard Griffiths at or on 07875 653959

* The four main trade associations are the BCCA, Consumer Finance Association (CFA), the Consumer Credit Trade Association (CCTA) and the Finance & Leasing Association (FLA).

** The Charter will be available to consumers on lenders' websites, and in store where they have a high street outlet by 26th November 2012.

BCCA Limited t/a BCCA is registered in England and Wales, company registration number 07708528.
The registered address is BCCA Limited c/o Meacher-Jones, 6 St John’s Court, Vicars Lane, Chester, CH1 1QE.

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