OFT takes further action against unfair direct debit clauses in payday loan contracts

[Legal Beagles]

The OFT has warned payday lenders that they must not misuse direct debit facilities to vary the amount or date of a loan repayment.

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[Amethyst]

Re: OFT takes further action against unfair direct debit clauses in payday loan contr

Good stuff. The OFT really are getting some work in before the cuts lol.

Requirements on paydayok - http://www.oft.gov.uk/shared_oft/pre...quirements.pdf

Shame they can't do the same with Bank Charges

The OFT believes that some lenders use this 'continuous authority' as a way to bypass proper checks on a borrower's ability to repay. The OFT is also concerned that taking money from a debtor's account when they are already in difficulty could prevent them from meeting priority debts, such as rent or mortgage payments.

[righty]

Re: OFT takes further action against unfair direct debit clauses in payday loan contr

Good stuff. The OFT really are getting some work in before the cuts lol.

Requirements on paydayok - http://www.oft.gov.uk/shared_oft/pre...quirements.pdf

Shame they can't do the same with Bank Charges

Yep their road to Dasmascus moment has been a long time coming