It's important to start with this key piece of advice - choose a payday lender that belongs to one of the main trade bodies. These are the Consumer Finance Association (CFA), BCCA, Consumer Credit Trade Association (CCTA) and FLA. Why? Because each requires its members to adhere to a strict code of conduct, much of which is designed to protect the rights of consumers and maintain proper standards within the industry.
So, when looking for a payday lender, be sure to look for the logo of one of these trade bodies. If you can't find one, speak to the lender and ask. It's also prudent to contact the trade body they claim to be affiliated with and check that everything is above board.
2. What payday lenders are supposed to communicate
Providers of payday and short-term loans are required to tell you certain things when you speak to them, in advance of actual borrowing. It is their responsibility to ensure you are fully informed of what you are about to agree to, such as the full borrowing cost. If you get into any trouble repaying your loan, think about whether you were fully informed in keeping with the Good Practice Customer Charter.
For example, to properly inform you about your loan, a payday lender is expected to give you an example of the price for each �100 borrowed, including all fees and charges. This ensures there aren't any nasty surprises awaiting you.
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