'Fundamental changes' in the way unarranged overdrafts are provided may be necessary, the Financial Conduct Authority (FCA) has concluded from its review into high-cost credit, the results of which are published today.
According to the regulator, the review provides "clear evidence" its regulation of high-cost short-term credit - more commonly known as ‘payday lending' - has delivered "substantial benefits to consumers". The review found some 760,000 borrowers in this market are saving around £150m a year; firms are "much less likely" to lend to customers who cannot afford to repay; and debt charities are seeing "far fewer clients" with debt problems linked to high-cost short-term credit. The regulator has therefore decided to leave the existing payday loan price cap in place and review it again in 202...
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