The Financial Conduct Authority (“FCA”) has called for feedback to inform its work on high-cost credit, including a review of the payday loan price cap and consideration of whether further policy interventions are required.
The price cap came into force on 2 January 2015 and is set to be reviewed two years after implementation. The FCA will consider whether the cap should be revised. The FCA will also assess whether there is any evidence that consumers are turning to illegal money lenders due to the existence of the cap effectively excluding them from access to high cost credit.
The FCA is also seeking evidence and feedback on overdrafts, in particular on the issues of the level and transparency of charges for unarranged overdrafts.
The FCA is asking for responses to its call for input by 15 February 2017. See the FCA’s press release here.