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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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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