Payday loans are for relatively small sums of money for short periods of time but they attract extremely high rates of interest.

People who are already in long-term financial difficulty with other debts, often use payday loans as a desperate way to try and stay afloat.

Most of the Payday lenders have now signed up to a voluntary charter that must be in place by late November.

Failure to do so could mean sanctions and the Office of Fair Trading has been given powers to stop rogue money lenders and debt collectors.

Here at the CAB we are keeping a close eye on Payday lenders in our area. Help us by letting us know if any of the following commitments are not being followed:

• Clear information on how a pay day loan works and an example of the price for each £100 borrowed, including fees and charges


• No pressure to take out loans or extend (roll over)

• Making affordability assessments and credit vetting to check that customers can afford to repay

• Setting out clearly how continuous payment authority works, giving rights to cancel and giving least three days notice of recovering payments

• Freezing interest and charges when a customer is in financial difficulty and making payments under a repayment plan. The CAB is here to help and our advice is free - you don’t need to cope alone with any debt or money worry.

Free, confidential advice and help is available from the Citizens Advice Bureau on any aspect of debt, benefits, employment, housing and any other problems.

You can contact the Grange or Windermere Citizens Advice Bureau by phone or in person.

Call 015395 33100 / 015394 46464. If you don't need us for advice, how about helping us by becoming a volunteer or making a donation? Not many people realize that we are a charity - see our website for details www.cumbriaruralcab.org.uk.