Which? executive director Richard Lloyd said:
“Wonga’s announcement is better late than never for struggling borrowers but it’s clearly a result of the regulator taking a tougher approach. The FCA must keep payday lenders on a tight leash.
“We have long called for more responsible affordability checks and better advice. The next step must be a clamp down on excessive fees and charges across the board to show lenders that the FCA will continue to clean up the credit market.”
In our most recent report on the credit market, we identified further action for the Financial Conduct Authority:
- Ensure lenders provide clear, transparent, easily comparable information
- Put borrowers in control of their credit
- Crack down on irresponsible lending – including withholding or withdrawing authorisation for firms that are found to have business models that rely on irresponsible lending or customers defaulting.
- Ban excessive default fees and charges
- Swift, early and effective intervention for people in financial difficulty