I recently met with the Citizens Advice Service Scotland in my office in Kirkcaldy to discuss the work they are undertaking across the Kingdom, particularly with regards to the rise of payday lenders. 

The meeting focused on the ‘Continuous Payment Authority’ which can be included in many payday loan agreements and provides the lender authorisation to take money from the customers’ bank account without having to give prior notice.

Many people are unaware of this clause in their original agreement with the payday lender and only become aware once the money has been taken from their account. Payday loan companies, by using the Continuous Payment Authority, are taking money out of the accounts of those that can least afford it and at times without their knowledge. This has to stop and I would urge anyone that thinks they have been affected to get in touch with their local Citizens Advice Bureau or my office.

Payday loan companies are sadly making profits out of other peoples financial misery across Scotland. Many people use payday’s loans as they struggle to pay for the basics, from food to their heating bills to their rent. A recent survey found that 75% of those that take out a payday loan in Scotland are in full time work. The majority of which are under 35 years old and just under a third own their own homes. They need support and help to ensure that they do not spiral into further debt, thankfully Citizens Advice Scotland are on hand to offer their expertise.

It is important that the people of Fife know that despite whatever challenges they are facing organisations such as Citizens Advice are at hand to offer help and support. You are entitled to cancel the continuous payment authority and you can do so by contacting your bank.

Citizens Advice Scotland is the national umbrella body that provides support for the Bureaux’s across Scotland. It is a membership organisation that aims to shape policy in Scotland and the UK through the experience of its members and clients. A study at the end of last year by the Fraser of Allander Institute found that the total common good of the Citizens Advice Service across the whole of Scotland totalled £166.2 million. Across the Fife Council Area this resulted in 92 jobs and £2 million in wages.

The Scottish Citizens Advice Bureaux Service has been offering advice in Scotland since 1939. Since its formation the Citizens Advice Bureaux has offered confidential advice and information for free to ensure individuals don’t suffer through a lack of knowledge of their rights and responsibilities.