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1643498

registered interest
date	09/06/2023
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Credit: Interest Rates
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what assessment he has made of trends in the level of interest charged by payday loan companies.
tabling member constituency	Gower
tabling member printed	Tonia Antoniazzi
uin	188759
answer	answer is ministerial correction date of answer 15/06/2023 answer text <p>The Government does not hold data on the trends in the level of interest charged by payday loan companies.</p><p> </p><p>However, the Government believes that consumers should be protected from unfair costs in the payday lending market. That is why the Government legislated to require the Financial Conduct Authority (FCA) to introduce a cap on the cost of payday loans. This came into force in January 2015 and means that payday loans have a total cost cap of 100%, ensuring that consumers never need to pay back more than twice the sum they have borrowed. This cap also includes a daily interest cap of 0.8%, lowering prices for borrowers who pay back loans on time.</p><p> </p><p>The FCA has also conducted a review of the cap. In July 2017 it released a Feedback Statement as part of its review of the high-cost credit market. This showed that the payday cap has been effective, leading to total savings of approximately £150 million for the 760,000 individuals using payday loans each year, and highlighted that many payday lenders lend at well below the 100% total cost cap. Overall, the review concluded that consumers pay less, repay on time more often, and are less likely to need help from debt charities.</p><p> </p><p>More broadly, the FCA requires regulated lenders to treat customers fairly when they are in financial difficulty. FCA guidance sets out that firms should provide support through tailored forbearance options for borrowers which ensures they receive the most appropriate and sustainable support for the long-term, including payment holidays where these are in the interest of the consumer. On 25 May 2023, the FCA published a consultation on how it plans to incorporate aspects of this tailored support guidance into its rules. The consultation can be found here: <a href="https://www.fca.org.uk/publications/consultation-papers/cp23-13-strengthening-protections-borrowers-financial-difficulty-consumer-credit-mortgages" target="_blank">https://www.fca.org.uk/publications/consultation-papers/cp23-13-strengthening-protections-borrowers-financial-difficulty-consumer-credit-mortgages</a></p><p> </p><p>For people in problem debt who do need help, the Government continues to maintain record levels of funding for free-to-client debt advice in England, bringing the 2023-24 debt advice budget for the Money and Pensions Service (MaPS) to £92.7 million. MaPS is the single largest funder of debt advice in England. It works alongside partners across the UK to make debt advice easier and quicker to access, and to improve standards and quality across the sector. In addition to this, the Breathing Space scheme which launched in England and Wales in 2021, offers people in problem debt a period of protection of up to 60 days on most enforcement action, interest, fees and charges, and encourages them to seek professional debt advice. As of May 2023 over 130,000 people have accessed the scheme’s vital protections.</p><p> </p> answering member constituency Arundel and South Downs answering member printed Andrew Griffith grouped question UIN 188760 188761 question first answered 15/06/2023 12:40:39 answering member 4874 label Biography information for Andrew Griffith
tabling member	4623 label Biography information for Tonia Antoniazzi

1643499

registered interest
date	09/06/2023
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Credit: Interest Rates
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, whether his Department is taking steps to regulate the interest rates offered by payday loan providers.
tabling member constituency	Gower
tabling member printed	Tonia Antoniazzi
uin	188760
answer	answer is ministerial correction date of answer 15/06/2023 answer text <p>The Government does not hold data on the trends in the level of interest charged by payday loan companies.</p><p> </p><p>However, the Government believes that consumers should be protected from unfair costs in the payday lending market. That is why the Government legislated to require the Financial Conduct Authority (FCA) to introduce a cap on the cost of payday loans. This came into force in January 2015 and means that payday loans have a total cost cap of 100%, ensuring that consumers never need to pay back more than twice the sum they have borrowed. This cap also includes a daily interest cap of 0.8%, lowering prices for borrowers who pay back loans on time.</p><p> </p><p>The FCA has also conducted a review of the cap. In July 2017 it released a Feedback Statement as part of its review of the high-cost credit market. This showed that the payday cap has been effective, leading to total savings of approximately £150 million for the 760,000 individuals using payday loans each year, and highlighted that many payday lenders lend at well below the 100% total cost cap. Overall, the review concluded that consumers pay less, repay on time more often, and are less likely to need help from debt charities.</p><p> </p><p>More broadly, the FCA requires regulated lenders to treat customers fairly when they are in financial difficulty. FCA guidance sets out that firms should provide support through tailored forbearance options for borrowers which ensures they receive the most appropriate and sustainable support for the long-term, including payment holidays where these are in the interest of the consumer. On 25 May 2023, the FCA published a consultation on how it plans to incorporate aspects of this tailored support guidance into its rules. The consultation can be found here: <a href="https://www.fca.org.uk/publications/consultation-papers/cp23-13-strengthening-protections-borrowers-financial-difficulty-consumer-credit-mortgages" target="_blank">https://www.fca.org.uk/publications/consultation-papers/cp23-13-strengthening-protections-borrowers-financial-difficulty-consumer-credit-mortgages</a></p><p> </p><p>For people in problem debt who do need help, the Government continues to maintain record levels of funding for free-to-client debt advice in England, bringing the 2023-24 debt advice budget for the Money and Pensions Service (MaPS) to £92.7 million. MaPS is the single largest funder of debt advice in England. It works alongside partners across the UK to make debt advice easier and quicker to access, and to improve standards and quality across the sector. In addition to this, the Breathing Space scheme which launched in England and Wales in 2021, offers people in problem debt a period of protection of up to 60 days on most enforcement action, interest, fees and charges, and encourages them to seek professional debt advice. As of May 2023 over 130,000 people have accessed the scheme’s vital protections.</p><p> </p> answering member constituency Arundel and South Downs answering member printed Andrew Griffith grouped question UIN 188759 188761 question first answered 15/06/2023 12:40:39 answering member 4874 label Biography information for Andrew Griffith
tabling member	4623 label Biography information for Tonia Antoniazzi

1643501

registered interest
date	09/06/2023
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Credit: Interest Rates
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what steps his Department is taking to help people in debt as a result of interest being accrued on pay day loans.
tabling member constituency	Gower
tabling member printed	Tonia Antoniazzi
uin	188761
answer	answer is ministerial correction date of answer 15/06/2023 answer text <p>The Government does not hold data on the trends in the level of interest charged by payday loan companies.</p><p> </p><p>However, the Government believes that consumers should be protected from unfair costs in the payday lending market. That is why the Government legislated to require the Financial Conduct Authority (FCA) to introduce a cap on the cost of payday loans. This came into force in January 2015 and means that payday loans have a total cost cap of 100%, ensuring that consumers never need to pay back more than twice the sum they have borrowed. This cap also includes a daily interest cap of 0.8%, lowering prices for borrowers who pay back loans on time.</p><p> </p><p>The FCA has also conducted a review of the cap. In July 2017 it released a Feedback Statement as part of its review of the high-cost credit market. This showed that the payday cap has been effective, leading to total savings of approximately £150 million for the 760,000 individuals using payday loans each year, and highlighted that many payday lenders lend at well below the 100% total cost cap. Overall, the review concluded that consumers pay less, repay on time more often, and are less likely to need help from debt charities.</p><p> </p><p>More broadly, the FCA requires regulated lenders to treat customers fairly when they are in financial difficulty. FCA guidance sets out that firms should provide support through tailored forbearance options for borrowers which ensures they receive the most appropriate and sustainable support for the long-term, including payment holidays where these are in the interest of the consumer. On 25 May 2023, the FCA published a consultation on how it plans to incorporate aspects of this tailored support guidance into its rules. The consultation can be found here: <a href="https://www.fca.org.uk/publications/consultation-papers/cp23-13-strengthening-protections-borrowers-financial-difficulty-consumer-credit-mortgages" target="_blank">https://www.fca.org.uk/publications/consultation-papers/cp23-13-strengthening-protections-borrowers-financial-difficulty-consumer-credit-mortgages</a></p><p> </p><p>For people in problem debt who do need help, the Government continues to maintain record levels of funding for free-to-client debt advice in England, bringing the 2023-24 debt advice budget for the Money and Pensions Service (MaPS) to £92.7 million. MaPS is the single largest funder of debt advice in England. It works alongside partners across the UK to make debt advice easier and quicker to access, and to improve standards and quality across the sector. In addition to this, the Breathing Space scheme which launched in England and Wales in 2021, offers people in problem debt a period of protection of up to 60 days on most enforcement action, interest, fees and charges, and encourages them to seek professional debt advice. As of May 2023 over 130,000 people have accessed the scheme’s vital protections.</p><p> </p> answering member constituency Arundel and South Downs answering member printed Andrew Griffith grouped question UIN 188759 188760 question first answered 15/06/2023 12:40:39 answering member 4874 label Biography information for Andrew Griffith
tabling member	4623 label Biography information for Tonia Antoniazzi

1465199

registered interest
date	24/05/2022
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Credit: Interest Rates
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what steps he is taking to reduce the number of people who are in debt as a result of pay day loan schemes.
tabling member constituency	Strangford
tabling member printed	Jim Shannon
uin	7977
answer	answer is ministerial correction date of answer 31/05/2022 answer text <p>The Government strongly believes that consumers should be protected from unfair costs in the payday lending market to avoid them falling into problem debt. The Government therefore legislated to require the Financial Conduct Authority (FCA) to introduce a cap on the cost of payday loans, which came into force in 2015. In July 2017, the FCA released a Feedback Statement as part of its review of the high-cost credit market. This showed that the payday cap has been effective, leading to total savings of approximately £150 million for the 760,000 individuals using payday loans each year. Customers pay less, repay on time more often, and are less likely to need help from debt advice charities.</p><p> </p><p>However, the Government recognises that some people will be struggling with their personal finances during these challenging times and may find themselves in problem debt. That is why the Government is maintaining record levels of free-to-client debt advice funding for the Money and Pensions Service in 2022/23. In addition to this, the Government launched the Breathing Space scheme in England and Wales last year. The scheme gives eligible people in problem debt who receive professional debt advice access to a 60-day period in which enforcement action is paused and most fees, charges and interest are frozen.</p><p> </p><p>The Government also continues to develop the Statutory Debt Repayment Plan (SDRP), a statutory agreement that will enable a person in problem debt to combine their debts into a single repayment plan, with payments made over a manageable time period, while receiving legal protections from creditor action for the duration of their plan<em>.</em></p> answering member constituency Salisbury answering member printed John Glen question first answered 31/05/2022 09:26:29 answering member 4051 label Biography information for John Glen
tabling member	4131 label Biography information for Jim Shannon

1247116

registered interest
date	30/10/2020
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Credit: Interest Rates
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the covid-19 outbreak on the door-to-door and payday loans market.
tabling member constituency	North West Durham
tabling member printed	Mr Richard Holden
uin	109730
answer	answer is ministerial correction date of answer 09/11/2020 answer text <p>The Government has fundamentally reformed regulation of the consumer credit market, including door-to-door and payday lending, giving regulatory responsibility of this area to the Financial Conduct Authority (FCA) in 2014.</p><p> </p><p>This more robust regulatory system is helping to deliver the Government’s vision for a well-functioning and sustainable consumer credit market which works effectively for both firms and consumers.</p><p> </p><p>The FCA proactively monitors the market to understand the pressures that firms face, as well as any risks that may arise for consumers. Throughout the COVID-19 pandemic, the FCA and the Treasury have continued to engage with the sector to understand the effect of COVID-19 on the market.</p> answering member constituency Salisbury answering member printed John Glen question first answered 09/11/2020 08:19:26 answering member 4051 label Biography information for John Glen
tabling member	4813 label Biography information for Mr Richard Holden

1186661

registered interest
date	19/03/2020
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Credit: Interest Rates
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what steps he plans to take to prevent high interest being charged on loans to people in financial difficulties as a result of the covid-19 outbreak; and if he will make a statement.
tabling member constituency	Harrow West
tabling member printed	Gareth Thomas
uin	32045
answer	answer is ministerial correction date of answer 25/03/2020 answer text <p>On 17 March, the Government announced a package of measures totalling £350 billion aimed at supporting the financial wellbeing of British businesses, individuals, and families. The Government is committed to doing whatever it takes to get our nation through the impacts of COVID-19 and, as part of this, is continually assessing all areas of the financial sector – including rates of interest on loans. The Government is working closely with the Financial Conduct Authority (FCA) and the lending sector on this issue and stands ready to announce further action wherever necessary.</p><p> </p> answering member constituency Salisbury answering member printed John Glen question first answered 25/03/2020 15:12:12 answering member 4051 label Biography information for John Glen
tabling member	177 label Biography information for Gareth Thomas

1184405

registered interest
date	11/03/2020
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Credit: Interest Rates
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what safeguards are in place to protect consumers from payday lenders that have gone into administration.
tabling member constituency	Livingston
tabling member printed	Hannah Bardell
uin	28060
answer	answer is ministerial correction date of answer 17/03/2020 answer text <p>The Government has fundamentally reformed regulation of the consumer credit market, including payday lending, by transferring responsibility to the Financial Conduct Authority (FCA) in 2014. This more robust regulatory system is helping to deliver the Government’s vision for a well-functioning and sustainable consumer credit market which is able to meet the needs of all consumers.</p><p> </p><p>Where the FCA has found issues with firms’ practices through its supervision process, it has acted. However, many complaints regarding payday lenders originate before the FCA was responsible for the regulation in this market.</p><p> </p><p>When a firm enters administration, assets are pooled and used to cover customer redress claims and administration costs with these claims being addressed in order of the creditor hierarchy. The payment of redress claims is a matter for the administrators.</p><p> </p><p>The Financial Services Compensation Scheme (FSCS) is the compensation scheme of last resort for customers of UK authorised financial services firms and is funded by a levy on industry. The FSCS is an independent non-governmental body and carries out its compensation function within rules set by the Prudential Regulation Authority (PRA) and the FCA. The FCA has the power to decide which activities are given FSCS protection. In 2016, the FCA decided not to extend FSCS protection to most consumer credit activities because it believed other regulatory requirements were sufficient. The full reasoning behind the FCA’s decision is set out in a letter from its Chief Executive to the Chair of the Treasury Select Committee on 15 February 2019.</p> answering member constituency Salisbury answering member printed John Glen grouped question UIN 28061 question first answered 17/03/2020 10:37:01 answering member 4051 label Biography information for John Glen
tabling member	4486 label Biography information for Hannah Bardell

1131787

registered interest
date	12/06/2019
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Credit: Interest Rates
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what recent steps his Department has taken to assist customers of payday loan companies that have gone into insolvency.
tabling member constituency	Tooting
tabling member printed	Dr Rosena Allin-Khan
uin	263888
answer	answer is ministerial correction date of answer 20/06/2019 answer text <p>The Government has fundamentally reformed regulation of the consumer credit market, transferring regulatory responsibility to the Financial Conduct Authority (FCA) on 1 April 2014.</p><p> </p>Any outstanding complaints against payday loan companies that enter into insolvency are dealt with directly by the administrators of the companies in question. Customers should continue to make any outstanding payments as instructed by the administrators. The FCA has issued advice to customers of such companies, and the administrators are required by law to contact all known creditors to provide them with their proposals for administration. answering member constituency Salisbury answering member printed John Glen question first answered 20/06/2019 14:29:13 answering member 4051 label Biography information for John Glen
tabling member	4573 label Biography information for Dr Rosena Allin-Khan

1088700

registered interest
date	14/03/2019
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Credit: Interest Rates
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, how many times the Financial Conduct Authority has taken enforcement action against lenders who have breached the rules on affordability checks for loans in each of the last five years.
tabling member constituency	Cardiff Central
tabling member printed	Jo Stevens
uin	232597
answer	answer is ministerial correction date of answer 19/03/2019 answer text <p>On 1 April 2014, regulation of the consumer credit market, including payday lenders, was transferred to the Financial Conduct Authority (FCA).</p><p> </p><p>We have passed the Honourable Member’s question on to the FCA, who will reply directly by letter. A copy of the letter will be placed in the Library of the House.</p> answering member constituency Salisbury answering member printed John Glen question first answered 19/03/2019 14:08:19 answering member 4051 label Biography information for John Glen
tabling member	4425 label Biography information for Jo Stevens

1077627

registered interest
date	26/02/2019
answering body	Treasury
answering dept id	14
answering dept short name	Treasury
answering dept sort name	Treasury
hansard heading	Credit: Interest Rates
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Chancellor of the Exchequer, what steps his Department is taking to reduce the harm caused by high interest payday loans.
tabling member constituency	Lanark and Hamilton East
tabling member printed	Angela Crawley
uin	226162
answer	answer is ministerial correction date of answer 04/03/2019 answer text <p>On 1 April 2014, regulation of the consumer credit market, including payday lenders, was transferred to the Financial Conduct Authority (FCA). The government has given the FCA strong powers to protect consumers and to take action against firms and individuals that do not meet its standards.</p><p> </p><p>The government legislated to require the FCA to introduce a cap on the cost of payday loans, which came into force on 2 January 2015. The FCA published a feedback statement in July 2017, showing that the price cap has been effective, leading to savings of approximately £150 million for 760,000 individuals using payday loans each year.</p><p> </p><p>At Autumn Budget 2018 the Government announced a package of measures to help low income consumers access safe, affordable and sustainable credit.</p> answering member constituency Salisbury answering member printed John Glen question first answered 04/03/2019 14:14:56 answering member 4051 label Biography information for John Glen
tabling member	4469 label Biography information for Angela Crawley