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We welcome plans for payday lending cap, but will it go far enough?

calendar25 November 2013

We welcome plans for payday lending cap, but will it go far enough?

Christians Against Poverty has today welcomed comments from Chancellor George Osborne that the cost of credit will be capped. 

Ahead of the FCA (Financial Conduct Authority) taking responsibility for consumer credit in April next year, he said: 'Payday lending was almost entirely unregulated when this Government came to office. We’ve created a powerful new consumer regulator; we’ve taken steps to control the roll over of those loans and I think the next logical step is now to cap the overall cost of credit.'

Our Chief Executive, Matt Barlow, said today: 'We are really pleased this issue is still high on the Government’s agenda. Too many of our clients have fallen deeper into debt through high cost lending and we eagerly await the FCA’s new regulations in the Spring. We encourage the FCA to go further and look closely at all areas of the finance industry, not just the headline-­‐grabbing payday lenders but also banks and door-­‐step lenders to protect the most needy in our society. Clearly, too, there is a bigger issue for us all when people have no option but to take out payday loans to pay for essential living costs like food.'

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