Citizens Advice responds to FCA findings on high-cost short-term credit market

By agency reporter
January 26, 2019

Citizens Advice has responded to the Financial Conduct Authority's (FCA) announcement that more than 5.4 million loans were taken out in the year to 30 June 2018.

Gillian Guy, Chief Executive of Citizens Advice, said: “These credit products are aimed at people who have little choice but to borrow to meet the cost of essentials, often leaving them heavily in debt after taking out small loans.

“Our evidence shows that well-designed caps can prevent costs spiralling out of control, as the FCA has done in the payday loan market. The FCA has announced a cap on rent-to-own which is good news and this needs to include a limit on arrears charges when it’s introduced in April.
It must also build upon these protections by capping the cost of doorstep loans."

* More on the FCA's findings on high-cost short-term lending here

* Citizen's Advice https://www.citizensadvice.org.uk/

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