Payday Lenders Be Warned

Payday Lenders Be Warned.

The Financial Conduct Authority (FCA) is taking over the regulation of lenders and debt management firms and has issued a major warning to firms that don’t follow the new stricter lending rules.

The FCA has suggested previously that it would investigate the payday lending sector after many discoveries of lending to those who would not normally be able to gain access to funds, as well as the way lenders were reclaiming their loans.

Amongst the changes to rules, the regulator wishes to deal with the charges for these quick loans as some can have a very high initial and interest rate charges and the possibility of those who use these firms being forced into a debt spiral.

The regulator has also taken over regulation of credit cards, debt management firms, hire purchase and debt advisers.

Comment

Long overdue.  Too many get trapped in debt, we suggest many debt firms with clean up or 'ship out' and sell on their debt clients/book.