FCA’s Christmas warning shows need to police online loan sharks
With the Financial Conduct Authority echoing1 the CFA’s warning2 about a number of firms that are carrying out consumer credit activities, specifically offering ‘Christmas Loans’ in the UK, without permission or authorisation, Russell Hamblin-Boone, Chief Executive of the Consumer Finance Association which represents some of the best known short-term lenders in the UK, said:
“The FCA’s echo of our warning about a wave of web bandits targeting UK borrowers this Christmas comes at a time when the very existence of the only team that protects UK borrowers from illegal lending is under threat.
“The Illegal Money Lending Team (IMLT) is losing funding at a time when its resources should be increased to allow it to tackle online web bandits as well as those who blight communities across the UK. The CFA is calling on the Treasury to transfer the IMLT into the FCA so that the entire consumer credit industry can continue to fund its important work through the levy.”
- Financial Conduct Authority’s warning about unauthorised Christmas loan websites (15 December 2015): http://www.fca.org.uk/news/warnings/christmas-loans-cc
- CFA Christmas website warning (09 December 2015): http://www.cfa-uk.co.uk/media-centre/press-releases/current-press-releases/christmas-cash-websites-should-ring-alarm-bells,-not-jingle-bells,-for-online-borrowers.html