Payday Landers Suffer Novel Curbs

PaydayAccording to a new report, unlimited fines could be imposed on those companies, which put tough controls on the payday lenders.

The next year, regulation of consumer credit will be taken over by The Financial Conduct Authority (FCA) from the Office of Fair Trading (OFT). This regulation will take place in the month of April, 2014.

An organization was formed six months ago, which will cover tens of thousands of firms offering services, which includes overdrafts, credit cards and debt advice. This organization promised to provide strength and protection to the consumers.

Other recommendations which are imposed by them are: putting a limit to two, to reduce the number of times a payday loan can be rolled-over, misleading adverts must be banned and necessary affordability checks for all loan applicants.

Since the damning report have been heard with the payday loan by the OFT, intense security measures have been taken place to improve their conditions in the past few months.

The next year, the results of the full-scale investigation of the industry will be revealed by The Competition Commission.

Martin Wheatley, chief executive of the FCA's, said: "Today I'm putting payday lenders on notice: tougher regulation is coming and I expect them all to make changes so that consumers get a fair outcome".