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<p>On 1 April 2014 the Government transferred regulatory responsibility for consumer
credit from the Office of Fair Trading (OFT) to the Financial Conduct Authority (FCA).
The FCA proactively monitors the market, focusing on the areas most likely to cause
consumer harm. The Government has given the FCA the power to cap all forms of credit,
and the FCA can do so if it thinks it is necessary to protect consumers.</p><p> </p><p>The
FCA introduced a price cap on the cost of payday lending in 2015, and more recently
introduced a price cap on rent-to-own which came into force on 1 April 2019. The Government
has strong concerns about the practices that the FCA has identified in the rent-to-own
market, and welcomes the FCA’s decision to introduce a price cap.</p><p> </p><p>The
FCA has said that it will keep the issue of capping the cost of credit in other markets
under review.</p>
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