R3, the insolvency trade body, welcomes the new proposals from the Financial Conduct Authority on the regulation of the payday loan industry.
James Stares, Chairman of the Southern Committee of R3 and director at Grant Thornton in Southampton, says: “Our members have become increasingly concerned about the impact of payday loans on the UK’s personal finances. While short-term, high cost credit does have its uses, the current payday market makes it too easy for financially vulnerable people to get caught in a debt trap.
“It’s encouraging to see the FCA not shy away from looking into the key concerns about the industry, including continuous payment authority, rollovers, and advertising. It’s important that the FCA follows up its proposals by ensuring they are fully implemented from next year. The FCA is talking the talk, but it has to walk the walk too.”
