The Financial Conduct Authority (FCA) set out its vision for the regulation of consumer credit when it takes over from today
The proposed regime will let the FCA to produce more powerful security and better results for customers compared to the current OFT regime. There will be tougher needs for payday loan providers, including an affordability that is mandatory on borrowers, restricting the amount of loan roll-overs to two, and limiting (to two) the amount of times a continuing re re payment authority (CPA) can be utilized. There may additionally be tighter limitations on which lenders that are payday state in ads, although the FCA should be able to ban any which are misleading.
FCA legislation will affect any company or specific credit that is offering and individual loans, attempting to sell products or solutions on credit, providing products for hire, or providing debt counselling or debt adjusting services to customers.