FCA licensing needed urgently to protect consumers, says lenders’ trade association

Commenting on the allegations regarding the sale of payday loan applicants’ details, Russell Hamblin-Boone, Chief Executive of the Consumer Finance Association, which represents some of the best known payday lenders but does not represent brokers, said:

“We have warned about the danger of web bandits that ignore the rules and cause harm to consumers. This investigation is proof of our concerns and we urge the Financial Conduct Authority to speed up the authorisation of short-term lenders, so that borrowers can easily tell the difference between licensed, responsible firms and unlicensed firms who flout the rules and bombard people with emails.

“Anyone applying to a CFA member for a loan can be assured that their personal data is always safe. It will never be shared with third parties unless express permission is given by the customer. CFA members carefully vet any brokers to ensure they meet the high standards of FCA regulation and they do not send unsolicited emails.

“We advise any potential borrowers never to give their details to a website that they don’t know or trust. Look for an authorisation number on the FCA’s register and avoid websites with spelling mistakes and bad grammar.”