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<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><p>The FCA requires payday lenders to carry out robust affordability
checks, limits the number of times a payday loan can be rolled over to two, places
tough restrictions on lenders’ use of continuous payment authorities, and requires
all payday lending adverts to include a risk warning and information about where to
get free debt advice.</p><p> </p><p>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. In 2018, the FCA issued total fines of £60 million.</p><p><strong>
</strong></p><p>On problem debt more broadly, the Government is implementing its manifesto
commitment to introduce a breathing space and statutory debt repayment plan. The two
polices aim to give people in problem debt the opportunity to take control of their
finances and put them on a sustainable footing.</p>
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