The FCA will be taking over the regulation of consumer credit, previously regulated by the OFT. As part of this change the FCA consulted on a number of new rules that they plan to introduce on the consumer credit industry. This includes specific rules on the high-cost short-term lending industry of which payday loans are a part of.
We believe that many of these rules will help end some of the worst practices within this particular market and will make sure that consumers best interests are kept at the heart of the regulation. CAS have made a number of recommendations as part of this consultation including an introduction of automatic fines for breached of CPA rules.
CAS will work with the regulator to highlight cases were we see evidence of the new rules being breached.