Day: August 8, 2013

CAS urges fight back against unscrupulous lenders

despair1The Citizens Advice service has launched a month-long campaign encouraging payday loan customers to fight back against unscrupulous lenders.

Three in four payday borrowers who got advice from the Citizens Advice consumer service had been treated unfairly by their lender and could have grounds for an official complaint to the Financial Ombudsman Service, says the national charity.

Citizens Advice’s in-depth analysis of 665 payday loan cases reported to its consumer service between 1 January and 30 June 2013, finds that at least 76% could have grounds for an official complaint to the Financial Ombudsman, including:

  • 1 in 5 were possible cases of fraud – where a person was chased for a loan they hadn’t taken out.
  • More than a third involved issues with continuous payment authorities including money that was not authorised to be taken.
  • 12% involved harassment whereby lenders pester people with phone calls and text messages rather than accept affordable repayment offers.
  • 1 in 10 were about lenders’ unfair treatment of people in financial difficulties.

Latest figures from Citizens Advice Scotland’s (CAS) on-going payday loans survey show that lenders are frequently acting in breach of the Good Practice Charter, put in place last November. Scottish CAB advisers dealt with over 1,200 cases related to Payday Loans from April to June this year, and clients are frequently reporting breaches – see case studies below.

Citizens Advice Scotland and Citizens Advice England and Wales launched a month-long campaign across the UK on Monday, urging payday loan customers not to let predatory lenders get away with treating them unfairly.

Consumers who are finding it difficult to raise their payday loan problem with their lender can contact the Financial Ombudsman who will help them through the complaint process.  There were 160 complaints made to the Financial Ombudsman between April and June this year about payday loans, with 72% upheld in favour of the consumer.

If a complaint is upheld by the Financial Ombudsman – and the consumer has lost out as a result – the lender can be ordered to put things right.  Consumers could get a refund on loan repayments, interest or default charges or compensation for any inconvenience caused.

Citizens Advice Scotland Chief Executive Margaret Lynch said:

“Across Scotland our bureaux are seeing clients whose payday loan debts have spiraled out of control. We’re seeing hardship and misery caused across the country. Our clients feel powerless but they’re not. This campaign is all about showing them that it is possible to fight back. We want to show people who have taken out payday loans how to identify when their lender has treated them unfairly, and how to do something about it. Citizens advice bureaux can help you negotiate a fair repayment plan and complain to the Financial Ombudsman service. It might even be that the Ombudsman feels you’re entitled to a refund for an unauthorised payment or compensation for unfair treatment.’

As part of the campaign Citizens Advice has launched a new online animation to help people get on top of their payday loan problems.  It explains that payday lenders aren’t allowed to take money from your bank account without you knowing, nor should they put pressure on to borrow more money or contact you at all hours of the day.  Citizens Advice Scotland is also taking to Twitter with the hashtag #paydaywatch as bureaux from across the country tweet about payday loan cases they are helping with.

Advice tips if you’re struggling to repay a payday loan:

  • Your payday lender should accept a repayment offer which is reasonable.
  • Don’t be pressurised to extend your loan – it will cost you more
  • It’s not ok for your lender to ring you during the night or more than once a day chasing you for money, or to contact your employer.
  • You should be able to get in contact with your payday lender.
  • If you are having these problems you can do something about it
    • Make a complaint by filling in our simple checklist at www.adviceguide.org.uk
    • Get advice from adviceguide.org.uk, from the Citizens Advice consumer service (08454 04 05 06  or 08454 04 05 05 for Welsh language line) or your local bureau
    • Make a complaint about a payday loan direct to the Financial Ombudsman Service consumer helpline on 0300 123 9 123 or 0800 023 4567 or via email complaint.info@financial-ombudsman.org.uk

Advice tips if you are in financial difficulty and considering a payday loan:

  • Get help with your money troubles. Your local bureau can provide debt advice and help you sort out your finances. By making a few changes you may be able to avoid taking out a short-term loan.
  • It is important to consider all the other options available to you before taking out a payday loan as they are expensive and could make your money problems worse.
  • Pay day loans can be a costly way to deal with short term financial problems and are not suitable for long term money troubles.
  • A loan from a credit union is more affordable – check if there’s a credit union in your area.
  • If you have a bank account, you may be able to agree an overdraft. But be careful of going overdrawn without permission and make sure you understand any fees and charges.
  • If you are thinking about taking out a payday loan to pay off other debts, don’t. Instead, speak to the companies you owe money to and agree a repayment plan. You can get help with debts from www.adviceguide.org.uk or your local citizens advice bureau.

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Prime Minister sends warm wishes to Muslims for Eid

Cameron Eid2Prime Minister David Cameron said:

“I send my warmest wishes to Muslims in the UK and overseas as they celebrate the festival of Eid-al-Fitr. After a month of longer summer days fasting, praying and putting aside many of the things that we can take for granted, Muslims will come together with friends and family to celebrate this joyous occasion. I wish you all Eid Mubarak.”

The Prime Minister yesterday visited the Jamia Mosque in Manchester as Muslims in the UK prepare for Eid 2013. He met senior members of the mosque, as well as members of the local community who use it.

Mr Cameron wished ‘Eid Mubarak’ to them and the wider UK Muslim community, heard views on a range of issues and discussed the challenges and opportunities ahead.

It was also an opportunity to recognise the positive response by the overwhelming majority of the Muslim community to the tragic death of Drummer Lee Rigby.

Cameron Eid1

Do you hear the people sing? People’s Festival offers arts alternative

Scunnered by the corporate commercialism of the Festival? Sick of being bled dry by the bloated beast that the Fringe has become? There is an antidote …  

Peoples Festival‘The Edinburgh Peoples Festival are determined to ensure that the world’s greatest arts festival is open to all citizens of the city. Our festival promises that, unlike the others, our program will remain within the financial reach of everyone, our shows will take place throughout the city (not just in EH1) and throughout the year and we will act primarily, although not exclusively, as a showcase for local talent.

We are committed to presenting the widest possible variety of high quality artistic productions and we aim to stimulate and challenge as well as entertain.’

Tickets are still available for tonight’s walking tour, a chance to dicover Edinburgh’s radical past, at 6.30pm and tomorrow’s showcase ‘The Stars Come Out to Gorgie’ – back at the BMC Club for a ninth year at 7.30pm.

See Edinburgh People’s Festival website for more details:

www.edinburghpeoplesfestival.org

Police appeal after Leith assault

A thirty year old man was treated in hospital after being followed from a Leith bar and attacked by a group of men last week. The man was subjected to a ‘serious assault’ in Arthur Street on Thursday at around 9pm and police are urging witnesses to come forward.

The victim had been drinking with friends in the Harp and Castle on Leith Walk but before leaving the bar he was involved in a “minor altercation” with three men, who are believed to be Polish.

It is thought that the assailants followed him from the bar into Arthur street where, follwoing a confrontation, two of the men attacked the local man before the third intervened. The three men then returned to Leith Walk.

The victim was able to make his way home and was later treated for his injuries at the Edinburgh Royal Infirmary.

All three men are described as white and around 5ft 7in to 5ft 8in tall.

The first man is thought to be in his early to mid 30s, with dark brown hair and was wearing a baseball cap, light blue jeans, white trainers and a yellow and black stripy shirt.

The second is believed to be in his early 20s with short blond hair and was wearing a grey Nike tracksuit, white trainers and a black Adidas baseball cap.

The third man is thought to be in his late 30s with short, dark hair and was wearing a dark suit and smart shoes.

Anyone with any information relating to this incident should get in contact with Police Scotland on 101, or Crimestoppers in confidence on 0800 555 111.

Police