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FCA measures on high-cost credit welcome – but further action 'must remain on the table'

​Money Advice Trust responds to the FCA’s high-cost credit review.

The Financial Conduct Authority (FCA) has today published its high-cost credit review. The review outlines proposals designed to protect people who use overdrafts and high-cost credit.

Joanna Elson OBE, chief executive of the Money Advice Trust, the charity that runs National Debtline, said:
 
“The FCA’s decision to introduce a cap in the rent-to-own market is welcome – and could make a significant difference to thousands of people.  The regulator should keep the impact of its new measures in other sectors, such as doorstep lending, under review – and be prepared to reconsider the case for further cost caps.
 
“Similarly, while new measures on unarranged overdrafts may go some way in addressing the problems we help people with at National Debtline – the FCA should still be prepared to intervene with its ‘backstop price cap’ if consumer detriment persists in this area.  It is important that this option remains firmly on the table.
 
“Today’s news has also been overshadowed by the government’s disappointing decision to step back from reforming logbook loans through its Goods Mortgages Bill.  In light of that decision, the FCA needs to takes urgent action to improve consumer protection in this sector, too.”
 
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