Commenting on the passing in the House of Lords of an amendment to the Financial Services Bill, which will give the Financial Conduct Authority the powers to cap the cost of payday loans, Russell Hamblin-Boone, Chief Executive of the Consumer Finance Association, said:
“The new powers agreed today are significant but are by no means simple to implement. Setting a cap at an appropriate level is a difficult task so it is vital that the regulator is able to consult robust evidence when considering invoking its new powers. We look forward to working with the FCA, to provide insight from payday customers and lenders, alongside evidence from the Bristol University research into the impact of credit caps, in order to ensure access to short-term, flexible credit is maintained for consumers.
“The CFA welcomes any move which promotes responsible lending and drives out rogue lenders. We are dedicated to setting higher standards in the payday industry and have worked closely with the Government, the regulator and consumer groups to devise and implement a range of consumer protections that are embodied in our Code of Practice. While this Code is a significant step forward for the responsible members of the payday industry, we have always maintained that it is not the end of the journey.”