Payday lenders retreat as regulations tighten
A new analysis by the Financial Times on the current state of play with payday lenders has shown that up to half have pulled out of the short-term, high interest loan market in the past 18 months.
Researchers from the newspaper examined data from the Financial Conduct Authority and established that at least a third of the UK’s 210 payday lenders did not apply for permission to run their business under the new rules that came into force in April, when the FCA took over consumer credit regulation from the Office of Fair Trading.
A new analysis by the Financial Times on the current state of play with payday lenders has shown that up to half have pulled out of the short-term, high interest loan market in the past 18 months.
Researchers from the newspaper examined data from the Financial Conduct Authority and established that at least a third of the UK’s 210 payday lenders did not apply for permission to run their business under the new rules that came into force in April, when the FCA took over consumer credit regulation from the Office of Fair Trading.
In addition, around 30 lenders had either surrendered licences or had them revoked by the OFT since the end of 2012. The FCA is now working on plans to cap the total cost of credit – something that was demanded by the Treasury in November.
For more on the Financial Times story, click here
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