Payday lenders face tighter controls, but no cap on interest rates

Payday lenders told to clean up their act 150 pxThe Financial Conduct Authority (FCA) is proposing tough new rules for payday lenders following concern over the way some are operating. However, the regulator has fallen short of capping the interest rate lenders will be able to charge, a decision which will frustrate many who have campaigned for the change. FCA payday loan proposals The proposals include: Forcing payday lenders to put risk warnings, similar to those used for mortgages, on their adverts, highlighting ...

Payday borrowers choose not to complain

Payday lenders told to clean up their act 150 pxCitizens Advice has revealed 76% of 665 cases it has seen recently could have been passed to the Financial Ombudsman Service (FOS), with many payday lenders allegedly collected repayments unethically. Examples of poor practice included:    Consumers chased for payments on loans they never took out Consumers “pestered” by phone calls and texts, despite having a repayment plan in place Possible fraud Consumers suffering from financial hardship being treated unfairly Following recent controversy over the tactics employed by some payday lenders, many ...

Payday lenders told to clean up their act

Payday lenders told to clean up their act Payday lenders have been told to clean up their act after the Office of Fair Trading (OFT) found widespread examples of “irresponsible lending”. The OFT also plans to refer the payday loan market, worth over £2 billion per year, to the Competition Commission, after uncovering “deep rooted” problems with how companies compete for business. After investigating the largest 50 payday loan companies the OFT is giving the sector just 12 weeks to change how ...

Housing & mortgage round up: Lending to first time buyers jumps and Savills predict house price rises

Housing & mortgage round upMixed signals from the housing market this week with figures from the Council of Mortgage Lenders (CML) showing a jump in the number of mortgages approved for first time buyers, whilst surveyors report that the housing market is still in the doldrums. Meanwhile Savills predict house prices rises and in the mortgage market there could be a shock for mortgage applicants who have taken out payday loan...