Payday lenders to face regulator's 'sympathy test'

The City watchdog has announced it is to investigate lenders to see how sympathetic they are when customers struggle to pay back debts.

View all 4 updates ›

Crackdown 'will force out quarter of payday lenders'

A new crackdown from financial regulators could put a quarter of payday lenders out of business, the head of the Financial Conduct Authority has said.

A clampdown from regulators could mean one in four payday lenders going out of business, the head of the Financial Conduct Authority says. Credit: Rui Vieira/PA Wire/Press Association Images

Martin Wheatley told Radio 4's Today programme:

"I think our processes will force approximately a quarter of the firms out of the industry and that’s a good thing because those are the firms that have poor practices, and for the rest, we want them to improve.”

More top news