Cash advance businesses could face tougher limitations on where, and exactly how, these are generally permitted to market.
That is one of the choices to be looked at by the Financial Conduct Authority (FCA), after Monday’s industry summit in Whitehall.
Loan providers, regulators, charities and federal government ministers all met to take into account controls on payday loan providers.
The other day, the present regulator, work of Fair Trading, referred the problem towards the Competition Commission.
Meanwhile the FCA, which gets control of regulation of this sector in April 2014, would be to begin a session workout on tougher guidelines in September.
“They will have to manage a regulator with a few teeth that are real” stated Treasury minister Sajid Javid.
“they’re going to have the hand for the regulator to their neck as well as get used to better it,” he stated.
Payday loan providers were accused of many different bad methods, including aggressive commercial collection agency and neglecting to exercise whether repayments are affordable.
The industry itself stated that summit had been a constructive and helpful conference. Russell Hamblin-Boone, for the customer Finance Association, stated the sector would give consideration to changing its practices further.