The high-cost short-term credit industry (including payday lending) has grown rapidly in recent years, as many consumers look for quick and easy borrowing to manage their finances. The FCA began regulating these firms on 1 April 2014, with a strong commitment and clear remit to tackle poor conduct in the market and ensure that there is an appropriate degree of protection for consumers. In January 2015, the FCA will introduce a price cap on what high-cost short-term credit lenders can charge. They are doing this to meet a duty to make rules about agreements that appear to us to involve high-cost short-term credit, with a view to securing an appropriate degree of protection for borrowers against excessive charges.
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