Payday loan providers as well as other high price brief term lenders could be the topic of an in-depth thematic review in to the means they gather debts and manage borrowers in arrears and forbearance, the Financial Conduct Authority (FCA) announced today.
The review are going to be one of several 1st actions the FCA takes as regulator of credit rating, which begins on 1 April 2014, and reinforces its dedication to protecting customers вЂ“ one of the statutory goals. It really is simply one element of FCAвЂ™s comprehensive and ahead searching agenda for tackling bad training in the high price temporary loan market.
Martin Wheatley, FCA leader, stated:
вЂњOur new guidelines imply that anyone taking right out a cash advance will be treated definitely better than before. But that is simply an element of the story; one in three loans get unpaid or are paid back late so we are going to be searching especially at just just how companies treat clients experiencing repayments.
вЂњThese in many cases are the individuals that find it difficult to pay the bills day to time, therefore we would expect them become addressed with sensitivity, yet some of the methods we now have seen donвЂ™t do that.