The FCA has published a consultation paper in response to the Competition and Markets Authority (CMA) final report into payday lending, published in February 2015.
The consultation paper contains proposals for additional standards for price comparison websites which compare high-cost short-term credit products and invites views on them. The consultation paper also addresses a number of other areas: the use of real-time data sharing to enable informed credit assessments, measures to improve shopping around without affecting consumers’ credit ratings, improved disclosure on the costs of borrowing, and credit broking/lead generation.
The consultation paper should be of interest to:
- Authorised firms with permissions relating to high-cost short-term credit and credit broking, including firms with interim permission.
- Firms that are applying for, or considering applying for, authorisation to carry out these activities.
- Trade bodies representing consumer credit firms.
- Consumer organisations.
The consultation is open until 28 January 2016.