The Financial Conduct Authority (FCA) has set out how it plans to regulate the consumer credit sector when it takes over from the Office of Fair Trading (OFT) next year, including plans to restrict what payday lenders can say in adverts.
Though the regulator believes payday lending "has a place", it said it would enforce providers to conduct tighter affordability checks among a raft of proposals for the sector. The FCA takes over responsibility for the regulation of consumer credit from the OFT on 1 April 2014. There are currently more than 50,000 firms with existing credit licences. The regulator said it wants to ensure that consumers are given enough information to make informed choices, that the market is competitive and offers loans that meet customer needs, and that those in difficulty are treated fairly. T...
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