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FCA sets out plans for tougher regulation of payday lenders
by Daniel Grote on Oct 03, 2013 at 07:47
The Financial Conduct Authority (FCA) has set out its plans for the regulation of consumer credit, promising stronger protection for consumers than the existing Office of Fair Trading regime.
The new regime, which will come into force on 1 April next year, will include the regulation of payday lenders.
The FCA said it would implement tougher standards for payday lenders, including a mandatory affordability check on borrowers, limiting the number of loan roll-overs to two, and restricting the number of times a continuous payment authority can be used, also to two.
It said payday lenders would also face tougher regulations on what they can say in adverts, in a consultation paper on its new powers.
FCA chief executive Martin Wheatley (pictured) said: ‘Our aim is to create a regime that protects consumers and allows businesses to operate. There is a balance to be struck here, and to make sure we get it right we want to hear from as many interested parties as possible.’
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