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03/10/2013
FCA Lay Out Payday Lender Regulations
A series of new rules governing how payday loan companies operate have been proposed by the Financial Conduct Authority (FCA) in a move to protect consumers.
Under the rules lenders could be made to include "risk warnings" on their adverts warning consumers of the dangers of debt.
It is one of a series of proposals, which include:
The FCA will also be able to ban adverts or loans that it does not approve of. It has said that while it believes payday loans do have a place, the type of credit offered by these companies should only be used by those who can afford it, adding that "payday lenders must not be allowed to drain money from a borrower's account."
The FCA will assume control of regulating consumer credit in April 2014, when it takes over from the Office of Fair Trading.
(MH/JP)
Under the rules lenders could be made to include "risk warnings" on their adverts warning consumers of the dangers of debt.
It is one of a series of proposals, which include:
- Lenders will not be able to extend, or "roll over", loans more than twice
- The number of attempts a payday lender can take money out of a borrower's account using a Continuous Payment Authority (CPA) should be limited to two
- Anyone extending a loan should be told about free debt advice
- The FCA could order lenders to change misleading adverts, or drop products that are not in the best interests of consumers.
The FCA will also be able to ban adverts or loans that it does not approve of. It has said that while it believes payday loans do have a place, the type of credit offered by these companies should only be used by those who can afford it, adding that "payday lenders must not be allowed to drain money from a borrower's account."
The FCA will assume control of regulating consumer credit in April 2014, when it takes over from the Office of Fair Trading.
(MH/JP)
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06 March 2013
Payday Lenders Risk Losing Licenses
The OFT is giving the leading 50 payday lenders, accounting for 90 per cent of the payday market, 12 weeks to change their business practices or risk losing their licences. They uncovered evidence of widespread irresponsible lending and failure to comply with the standards required of them.
Payday Lenders Risk Losing Licenses
The OFT is giving the leading 50 payday lenders, accounting for 90 per cent of the payday market, 12 weeks to change their business practices or risk losing their licences. They uncovered evidence of widespread irresponsible lending and failure to comply with the standards required of them.
05 November 2013
Lewis Slams Payday Lenders
MoneySavingExpert.com creator Martin Lewis has told MPs payday lenders are "in danger of grooming a new generation to this type of borrowing". Mr Lewis joined other consumer groups, regulators and payday loan firms at a Business, Innovation and Skills Select Committee hearing into the industry this morning.
Lewis Slams Payday Lenders
MoneySavingExpert.com creator Martin Lewis has told MPs payday lenders are "in danger of grooming a new generation to this type of borrowing". Mr Lewis joined other consumer groups, regulators and payday loan firms at a Business, Innovation and Skills Select Committee hearing into the industry this morning.
28 March 2012
Football Fans Call On Clubs To Stop Running Payday Loan Adverts
Fans of 18 football clubs have come together to petition their respective clubs to stop carrying advertising by payday loan company Wonga on their websites. The group, lead by Northampton Town supporter Bob Ward and grandson Dan, are also encourage fans of more than 60 other clubs to do the same.
Football Fans Call On Clubs To Stop Running Payday Loan Adverts
Fans of 18 football clubs have come together to petition their respective clubs to stop carrying advertising by payday loan company Wonga on their websites. The group, lead by Northampton Town supporter Bob Ward and grandson Dan, are also encourage fans of more than 60 other clubs to do the same.
20 November 2012
OFT Investigates Payday Lenders
The OFT has opened formal investigations into several payday lenders over aggressive debt collection practices. It is also today writing to all 240 payday lenders highlighting its emerging concerns over poor practices in the sector.
OFT Investigates Payday Lenders
The OFT has opened formal investigations into several payday lenders over aggressive debt collection practices. It is also today writing to all 240 payday lenders highlighting its emerging concerns over poor practices in the sector.
02 September 2014
Increase In People Struggling With Payday Loans
The number of people struggling with payday loans is increasing, according to debt charity StepChange. In the first six months of 2014 the charity helped almost 13,000 more people with payday loan debts than in the same period last year.
Increase In People Struggling With Payday Loans
The number of people struggling with payday loans is increasing, according to debt charity StepChange. In the first six months of 2014 the charity helped almost 13,000 more people with payday loan debts than in the same period last year.
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