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<p>The government is committed to supporting all those affected by problem debt, and
has a range of measures in place.</p><p> </p><p>The Financial Conduct Authority (FCA)
regulates the consumer credit market, and has introduced binding rules to strengthen
consumer protection. They are based on the principle that money should only be lent
to a consumer if they can afford to repay it; lenders must show forbearance if there
is evidence of financial difficulty.</p><p> </p><p>The FCA also capped the cost of
payday loans. As part of a review of this price cap, the FCA will examine the high-cost
credit market more broadly (such as rent-to-own), and consider whether further interventions
are necessary to address the risk of consumer harm.</p><p> </p><p>The Money Advice
Service (MAS), which was set up by the government, coordinates the provision of free-to-client
debt advice. In 2016/17, MAS spent just under £49 million on its debt advice work,
directing around 90% of this to fund frontline services. This led to more than 440,000
free-to-client debt advice sessions being delivered face-to-face, over the phone and
online across the UK.</p><p> </p><p>In the Queen’s Speech, the government announced
the Financial Guidance and Claims Bill. This will legislate to restructure the financial
guidance landscape and bring debt advice, money guidance, and pensions guidance together
in a single body, and give consumers better access to the financial information they
need. This Bill is currently going through Parliament.</p><p> </p>
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