Ferratum criticises “unscrupulous” operators
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The focus on high rates of interest for payday loans is taking attention away from the real issue of “unscrupulous” lenders who steal from customers, according to one firm.
The warning comes from Ferratum’s sales and marketing manager, Ian Porter, who says growing demand for short-term loans has created a market for rogue operators.
Ferratum is also issuing the warning as it says forecasts show by the middle of 2012 around 3.5m people will have taken out short-term loans.
Porter claims he’s heard from customers who’ve called in the police after a payday loan company demanded £100 upfront to process a loan.
However, the loan never came but the company used the applicant’s bank details to take more cash from the account.
Porter said: “Campaigners against the payday loan industry would be better served to try to root out the small number of unscrupulous operators trying to cash in on one of the fastest growing financial sectors.”