The Financial Conduct Authority (FCA) has written to payday lenders urging them to review their lending activity in order to determine if their creditworthiness assessments are compliant.
In a open letter to CEOs of providers of what it calls "high-cost short-term credit" (HCSTC), the FCA said that, if deficiencies were found, firms should take remedial action to ensure ongoing lending activity was compliant and also consider whether "proactive redress" may be required. It added that payday lenders should take prompt action to inform the FCA if they were unable - now or in the future - "to meet their financial commitments because of any remediation costs". In the letter, the FCA's director of supervision - retail and authorisations Jonathan Davidson said: "Firms' compl...
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