Consumers groups urge that payday loans be regulated by new body

Various consumer groups have suggested that those companies which offer payday loans should now be regulated by the

Various consumer groups have suggested that those companies which offer payday loans should now be regulated by the Financial Conduct Authority, which has been recently created. This would mean that these types of loan companies are going to be regulated by the same authority responsible for regulating retail bank accounts and mortgage loans.

Currently consumer credit is being regulated by the OFT, with other financial services being regulated by the FSA. Citizens Advice as well as Which? have recently endorsed a scheme by the government which would see the FCA and FSA split. This would encourage a more interventionist system which would be very beneficial for consumers.

This is a decision to be made by government ministers and it is thought that in the next few weeks a final decision is going to be created. This will then lead to the drafting of a new bill which will be put through Parliament in an attempt to reform the financial services system in the country. It is expected that if everything goes to plan the new system will be implemented by 2013.

It is also thought that the legal framework which is responsible for regulating credit that is not secured is also going to be changed by the government. This would lead to significant changes about consumer protection as well as protection for lenders. It is thought that the reforms would lead to regulators being able to be more nimble as they will be able to write in new rules as and when they are required.

which has been recently created. This would mean that these types of loan companies are going to be regulated by the same authority responsible for regulating retail bank accounts and mortgage loans.

Currently consumer credit is being regulated by the OFT, with other financial services being regulated by the FSA. The Citizens Advice Bureau, as well as Which? have recently endorsed a scheme by the government which would see the FCA and FSA split. This would encourage a more interventionist system which would be very beneficial for consumers.

This is a decision to be made by government ministers and it is thought that in the next few weeks a final decision is going to be created. This will then lead to the drafting of a new bill which will be put through Parliament in an attempt to reform the financial services system in the country. It is expected that if everything goes to plan the new system will be implemented by 2013.

It is also thought that the legal framework which is responsible for regulating credit that is not secured is also going to be changed by the government. This would lead to significant changes about consumer protection as well as protection for lenders. It is thought that the reforms would lead to regulators being able to be more nimble as they will be able to write in new rules as and when they are required.

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