The CIPP welcomes the changes to the payday loan legislation
Chartered Institute of Payroll Professionals (CIPP)
The Chartered Institute of Payroll Professionals welcomes any changes to legislation which help to regulate the payday loan market, but fervently believes that employers should take a proactive role in financial education and credit union support for their employees.
Lindsay Melvin, CEO of the CIPP, said: “Our vision is that every business will do two things: provide basic financial/budgeting education to their employees and partner with their local/trade credit union to provide a ‘no barrier’ means for employees to save and payback loans through payroll. Psychologically what you haven’t got at your disposal you don’t tend to miss.”
“Businesses will have a definite return on investment in terms of staff motivation and absence levels by implementing both practices and the CIPP and others have developed a suite of education materials to enable businesses to obtain free ‘off the shelf’ products.”
“The payroll industry is actively supporting this by not making any charges on the employee for this saving/paying through payroll facility and by actively engaging with credit unions or other form of affordable debt on the procedures and processes which need to be in place. The CIPP has developed a blueprint for this.”
For more information on the Chartered Institute of Payroll Professionals and its benefits, please visit www.cipp.org.uk
