Martin Wheatley, chief executive of new watchdog the Financial Conduct Authority (FCA) said the proposed changes to how payday lenders can operate is to ensure consumers are given greater protection, specifically to ensure lenders do not "drain money from a borrower's account."
We believe that payday lending has a place; many people make use of these loans and pay off their debt without a hitch, so we don’t want to stop that happening. But this type of credit must only be offered to those that can afford it and payday lenders must not be allowed to drain money from a borrower’s account.
Today I’m putting payday lenders on notice: tougher regulation is coming and I expect them all to make changes so that consumers get a fair outcome. The clock is ticking.