Media comment: Financial Conduct Authority Thematic Review

In response to the Financial Conduct Authority Thematic Review into arrears and forebearance in the high-cost short-term credit industry, Caroline Siarkiewicz, Head of UK Debt Advice Programme comments:

“We welcome the work that the FCA has done to begin to stamp out poor practices in the pay-day loan sector. Pay day loans can pose a risk to consumers, especially those who are using them as a short term solution to cover debts or unexpected costs. Some of the ‘unacceptable practices’ revealed are concerning, particularly the failure of lenders to make appropriate referrals to the free debt advice sector which offers invaluable support for indebted people in the UK. Also lenders should not be extending credit without a detailed understanding of a borrower’s financial position and the results of the review make it clear that a more customer-focused approach is needed going forward to support those in difficulty. “We recommend that consumers consider all options available to them before taking out any loan. The Money Advice Service has plenty of information to help, including a pay day loan advice tool which offers alternative suggestions to borrowing and impartial advice to help get finances back on track. The Debt Locator Tool also provides quick access to free high quality online, phone and face-to-face debt advice across the UK www.moneyadviceservice.org.uk/debt.”

Click here for the full FCA report.

For more information, please contact: The Money Advice Service press office on 020 7943 0593 or email pressoffice@moneyadviceservice.org.uk

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