24th February 2015
Following the release of the Competition and Markets Authority (CMA) review of the payday loan market, Mike O’Connor, Chief Executive of StepChange Debt Charity, said:
“The payday lending industry has had its wings clipped. CMA action combined with the work of the Financial Conduct Authority (FCA) means that a number of areas of consumer detriment and failures of the previous regulatory regime are now being addressed.
“There are, however, outstanding issues that now need attention. Current rules do not adequately address the issue of unsolicited marketing calls. It is very wrong that people seeking a loan have their information sold on to the highest bidder. The resulting barrage of nuisance calls and texts offering high-risk credit products can lead to serious harm for financially vulnerable people. We need a ban on the unsolicited marketing of high-cost credit products such as payday loans.”