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Payday lender CFO Lending is to pay 34 million redress to over 97,000 customers - Martin Lewis comments

By Martin Lewis

19 September 2016

MONEYSAVINGEXPERT.COM

Cutting your costs, fighting your corner

 

FOR IMMEDIATE RELEASE MONDAY 19 SEPTEMBER 2016   

 

Commenting on the news that payday lender CFO Lending is to pay £34 million redress to over 97,000 customers, Martin Lewis, founder of MoneySavingExpert.com, says: 

 

“This is yet further evidence of how the payday loans industry simply reaped vulnerable people for every penny - thankfully they are finally seeing payback for it.

 

“When I look back at the period when this was going on, we were warning politicians and telling them we needed stronger regulation, we needed better protection - but laissez-faire attitudes of the government at the time meant that many people weren’t protected. While giving them money back now does help them to an extent, it is not the same as having protected them in the first place. Thankfully the payday loan industry now has a fraction of the power and reach of what it once did.

 

“These things can be hugely financially dangerous – don’t trust these companies. It’s also worth asking yourself, if you are borrowing money to pay back in a month, what is going to be different in your circumstances that means you will be able to afford to pay it back then when you don’t have the cash now? For many people the answer is nothing, in which case it’s not a rescue for someone who is financially drowning, it’s splashing water over their head.”

 

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