Swinson swings for payday pirates

27 06 2013

UK CONSUMER ISSUES

Consumer minister Jo Swinson has called a summit to investigate if greater regulation is needed to control payday lenders.

The industry is currently under the remit of the Office of Fair Trading, who is set to hand control over to the FCA next year. In March of this year the OFT proposed referring payday lenders to the Competition Commission believing there to be: ‘evidence of deep-rooted problems in how lenders compete with each other’.

They also accused lenders of:

  • lenders failing to conduct adequate assessments of affordability before lending or before rolling over loans
  • failing to explain adequately how payments will be collected
  • using aggressive debt collection practices
  • not treating borrowers in financial difficulty with forbearance.

Swinson has invited payday loan companies, financial regulators, debt charities to the meeting. Among the topics being discussed it is expected that the powers the FCA will have when they take over regulation next…

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