Russell Hamblin-Boone, Chief Executive of the Consumer Finance Association, which represents some of the best known short-term lenders said :
“Through the voluntary rules that we put in place in 2012, the CFA’s members have been working towards the FCA’s rules for many months and are fully committed to meeting them. The industry has already changed significantly for the better and short-term lenders are now leading the way through initiatives such as real time credit checks.
“However over regulation is a real risk. Lenders are facing the prospect of a government price control before the full impact of new regulations is known. Borrowers consistently tell us how much they like and value short-term credit but if the regulator turns the screw too far and drives reputable lenders out of the market, these borrowers will be forced to look for credit elsewhere and this creates a perfect market for illegal lenders.”