Credit brokers 'prey on borrowers'

Press Association
Citizens Advice Bureau stock
Citizens Advice Bureau stock

Credit brokers are preying on cash-strapped borrowers by "posing" as payday lenders and charging unexpected fees for organising loans, according to evidence compiled by Citizens Advice.

The debt advice charity said consumers are being charged set-up costs of £70 on top of the expense of taking out a payday loan - and in some cases brokers are siphoning cash away from people's bank accounts without their clear permission.