1 December 2014
Following today’s announcement that the Financial Conduct Authority (FCA) has introduced new rules for credit brokers, Mike O’Connor, Chief Executive of StepChange Debt Charity said:
“This will help fix a serious problem with the consumer credit market. For too long unscrupulous credit brokers have subjected borrowers to poor practices, including misleading people as to whether they are a lender or a broker, taking fees that a people are unaware of, and passing on individuals’ details to other firms and lenders.
“Ensuring greater transparency for consumers will address detriment in this market. However, we remain concerned that brokers will still retain the ability to take upfront fees without ever delivering a loan, and we would urge the FCA to ban this practice.”