Uswitch comments on payday lender CFO Lending being forced to repay £35 million to borrowers
In response to the FCA’s announcement that payday lender CFO Lending will pay out £35 million in compensation to customers, Tashema Jackson, money expert at Uswitch.com, says: “This ruling is a significant victory for consumers who were vulnerable and offered loans they could never afford to pay back. The FCA has clamped down on payday lenders, but it can’t make up for the emotional distress caused by the escalating debts.
“For many people who feel they have nowhere else to turn when struggling to make ends meet, a short term credit provider who asks fewer questions may seem like an easier option. The truth is, the long term pain outweighs any perceived short term gain, as not only is there the escalating debt to deal with, but there can be a potential negative impact on your credit rating too.
“There are other, potentially cheaper, options like talking to credit unions and peer-to-peer lenders – or even borrowing money from friends and family. So if you find yourself with an unexpected expense, don’t think you have to resort to taking out a payday loan.
“If you have taken out a payday loan, and are struggling to make the repayments – get in touch with a debt charity such as StepChange, they’ll be able to help.”
Find out how you could save over £1,000 a year with Uswitch here.
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