The Welsh Government has called for tougher action on high interest payday loans companies after the new regulator said the “clock is ticking” for such lenders.
The Financial Conduct Authority takes over from the Office of Fair Trading for the regulation of consumer credit on April1 2014.
Martin Wheatley, the FCA’s chief executive, said: “We believe that payday lending has a place. Many people make use of these loans and pay off their debt without a hitch, so we don’t want to stop that happening. But this type of credit must only be offered to those that can afford it and payday lenders must not be allowed to drain money from a borrower’s account. That is why we’re imposing tighter affordability checks, and limiting the use of rollovers and continuous payment authorities.
“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. The clock is ticking.”