A new watchdog, the Financial Conduct Authority, will oversee the consumer credit market from next year.
Business Minister Jo Swinson, said of the new regulator:
– Business Minister Jo Swinson, speaking to BBC Breakfast
That's going to be a body that has much stronger powers to be able to ban certain products, to be able to stop lenders entering the market if they can't prove that they have a sound business model and they're going to act responsibly, and they've also got the power if necessary to set an interest rate cap.
This is going to be a very strong regulator.