Durkan calls for action on excessive default fees

14 02 2014

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SDLP Foyle MP Mark Durkan has called on the Financial Conduct Authority (FCA) to take urgent action in response to the growing problem of excessive default fees charged by payday loan companies and other lenders.

Mr Durkan, who sits on the Consumer Rights Bill committee at Westminster, said: “I have been supporting the different efforts by politicians and consumer rights groups (including the Charter to Stop the Payday Loan Rip-off and the Which? Clean Up Credit campaign), as well as putting pressure on the government to address the issue of  disproportionately high fees being charged by payday loan companies and other lenders if borrowers default on loans.

“Importantly, recent research published by the Competition Commission has found that more than a third of payday loan customers repay their debt late and incur default fees.

“I am therefore calling on the Financial Conduct Authority (FCA) to take urgent action to clamp down on excessive charges and irresponsible lending, and to make sure that borrowers are being treated fairly whatever form of credit they are using.”

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