Are UK payday lenders breaching EU irresponsible lending rules?

Are UK payday lenders breaching EU rules on irresponsible lending and if so what does this mean for consumers?  Govan Law Centre publishes a brief thought paper by Mike Dailly examining the 2010 Consumer Credit (EU Directive) Regulations introduction of section 55A and 55B to the Consumer Credit Act 1974. 

GLC and our partners have seen increasing examples of how the need for small, short term loans are being ruthlessly exploited by payday lenders to the detriment of our clients and communities. Households have become entrapped in impossible cycles of indebtedness with monthly default, roll over and eye watering usury interest rate charges.

Often the result of such expensive indebtedness is enforced poverty, personal hardship and threatened homelessness as clients cannot pay their rent or mortgage or buy household groceries as payday lenders hoover money and charges from their bank accounts each month. GLC believes this is unfair, unethical, and against the public interest.

GLC is in the process of actively challenging the right of payday lenders to recover their fees and charges on behalf of our clients and will share any developments in due course.