A quarter of payday loan firms 'could leave industry'

A quarter of payday loan firms could leave the industry because of tough lending rules, the financial services watchdog said. The Financial Conduct Authority is taking over regulation from the Office of Fair Trading.

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New regulator 'needs to be tough' on payday lenders

Gillian Guy, the Chief Executive of the Citizens Advice Bureau has said that The Financial Conduct Authority "needs to be tougher" on payday lenders.

The Financial Conduct Authority is taking over regulation of payday loans from the Office of Fair Trading.

Tony Boorman Chief Executive of the Financial Ombudsman Service also said that they will investigate "fair lending practice" to make sure customers are getting loans that they are able to pay.

He said: "customers often want lenders to treat them sympathetically and sensibly" when paying loans back.

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Financial regulator to 'take out' some payday lenders

The head of the Financial Conduct Authority, Martin Wheatley, said the regulator wanted to "take out" unscrupulous payday lenders.

He told Radio 4's Today programme.

Our concern has been that parts of this industry, not all, loan without doing any affordability checks and then loading costs onto people who simply cannot pay, and that's the part of the industry that we really want to take out, we want them to improve their standards or leave the industry.

Regulator warns payday loan firms

The financial services watchdog says tougher lending rules could see a quarter of payday loan firms leave the industry.

The Financial Conduct Authority is taking over regulation of payday loans from the Office of Fair Trading.

Payday loan firms will now be subject to tougher regulations Credit: Gareth Fuller/PA Archive/Press Association Images

The head of the FCA, Martin Wheatley, said: "We've said that up to a quarter could leave, I think the industry itself has estimated figures much higher than that, we'll have to see.

"We'd like firms to rise to our standards but if they can't we'd like them to leave the industry," he told Radio 4's Today programme.

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