Media comment: Recommendations from the FCA on the review of the high-cost short-term (HCSTC) credit price cap
David Haigh, Director UK Financial Capability at the Money Advice Service comments on recommendations from the FCA on the review of the high-cost short-term (HCSTC) credit price cap said:
- “We are pleased to hear of the FCAs decision to maintain the pay day loan price cap that has already resulted in improved customer outcomes. We also support the FCAs review into other forms of HCSTC, especially unauthorised overdrafts, broader reviews of motor finance, creditworthiness and affordability practices.
- “Our evidence suggests that of the financially capable behaviours that people exhibit, it is managing credit that can have the greatest impact on their financial wellbeing. We welcome further engagement with the sector to ensure potential borrowers are in a good position to assess their wider financial situation before taking out a payday loan.”