Minister on new 'strong' consumer credit watchdog

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:

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.

– Business Minister Jo Swinson, speaking to BBC Breakfast

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Clamp down on payday lenders

Britain's biggest payday lenders have been threatened with being put out of business after a damning report by the Office of Fair Trading uncovered evidence of "widespread irresponsible lending".