Some people look at pension loans as an alternative to payday loans, or as a way to pay off their debt from payday loans. There have even been suggestions from some financial experts that it would be better if people could access small amounts of money from their pensions, rather than going down the route of payday lending, with all the problems it can bring from unscrupulous lenders. Today, for example, The Sun reports that payday loan companies have been found to be breaking the competition rules that were designed to protect vulnerable borrowers.
“Under the new rules, online lenders are required to advertise on at least one price comparison website to help borrowers find the best deal. A “prominent” link to a price comparison website must also be displayed on their platform… But an investigation by consumer website MoneySavingExpert, which looked at 50 payday loan firms, found some were flouting the rules. Some ten payday firms did not appear to have any link to a price comparison website on their homepage in the first week of June, while a further ten did not appear to have a link displayed “prominently” on their website. Guy Anker, managing editor of MoneySavingExpert.com, said a worrying proportion of lenders seem to be operating with scant regard for the new rules.”