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FCA "right to turn its attention" to other forms of high cost credit

Money Advice Trust comments on FCA review of high-cost credit.

The Financial Conduct Authority (FCA) has today published the outcome of its review into high-cost credit. The review found evidence that the FCA's cap on payday lending has delivered "substantial benefits to consumers", but found "clear concerns" with other forms of high-cost credit.

Jane Tully, director of external affairs at the Money Advice Trust, the charity that runs National Debtline, said:

"The FCA's intervention in payday lending has shown that targeted regulation in the high cost credit market can make a real difference in protecting consumers.

"The FCA is right to now turn its attention to other forms of high cost credit, as well as unauthorised overdrafts, which have become a common feature of the problems that debt charities help people to resolve.

"As always, the regulator needs to be mindful of unintended consequences, including potential displacement effects between different forms of credit resulting from any intervention it makes. We look forward to working with the FCA as it develops tailored solutions for different sectors."

National Debtline offers free, independent and confidential advice 24 hours a day online at www.nationaldebtline.org or on 0808 808 4000, Monday to Friday 9am to 8pm, and Saturday 9.30am to 1pm.

 
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