The Consumer Finance Association ? why does it matter - Payday UK

Responsible Lending at PaydayUK.

When you apply for a payday loan through a reputable provider, you?ll probably see that your lender is a member of the Consumer Finance Association. But what does that actually mean?

The Consumer Finance Association (CFA) is the trade association representing organisations that offer short-term, unsecured personal loans. Its members are licensed and regulated by the Office of Fair Trading.

The CFA encourages its members to work to the highest standards, as responsible, transparent lenders that provide the very best customer service. Promoting responsible lending (and borrowing) and keeping its members up to date with changing legislation are key roles.

Its members are reputable payday loan providers ? companies that offer customers quick access to small sums of money (usually less than ?1,000). They include PaydayUK, The Money Shop, Express Finance, Quick Quid Cash Convertors, Cheque Centre, National Cash Advance, Cash Generators and Dollar Financial UK.

The payday loan industry is comparatively new in the UK and, like any developing industry, it needs to be self-governing, to set standards for the benefit of its customers. With so many providers out there, it?s important you reassure yourself that you are applying for a payday loan from a responsible lender, and membership of the CFA is a good indication that you?re dealing with a suitable lender.

The CFA has introduced a Code of Practice for its members. The Lending Code for Small Cash Advances covers all aspects of a payday loan, including:

? The lender must treat all customers fairly and with care, and correct any mistakes quickly. (As a consequence, the CFA states that complaints levels amongst its members are extremely low, whilst customer satisfaction levels are as high as 94%.)
? Customers must never be encouraged to borrow more than they need, and the lender must establish that the customer can afford to repay the loan. (Over 90% of applicants for on-line loans from CFA members are turned down after checks have been carried out.)
? Everything must be explained in clear language, and applicants must always be shown the total cost of repayment clearly before they apply for the loan, with no hidden charges or fees.
? The lender must fully explain the costs and consequences of late payment.

Visit the Consumer Finance Association to learn more about what it does, and to get more information about choosing and using payday loans. http://www.cfa-uk.co.uk

Source: http://www.paydayuk.co.uk/blog/2012/03/09/the-consumer-finance-association-%E2%80%93-why-does-it-matter/

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