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FCA promises tough action as it takes control of consumer credit

The Financial Conduct Authority has taken control of the consumer credit industry from today promising tough rules for short-term high-cost credit firms and debt management companies.

03 April 2014
loans money
Loan Money

In its 2014 risk outlook, published yesterday, the regulator said its plans to enforce a price cap on payday loans may affect some firms' appetite to remain in the sector if profits are damaged.

Speaking on Radio 5 live this morning, chief executive Martin Wheatley said: "Our processes will probably force about a quarter of the firms out of the industry and that's a good thing as those are the ones that have poor practices."

The £200bn-a-year sector, previously the responsibility of the Office of Fair Trading, contains approximately 50,000 firms.

These include credit card issuers, payday-loan companies, pawnbrokers, log book lenders, peer-to-peer lenders, and debt management and secured loan providers and brokers.

http://www.mortgagesolutions.co.uk/mortgage-solutions/news/2337347/fca-promises-tough-action-as-it-takes-control-of-consumer-credit

 

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