In response to the Financial Conduct Authority’s announcement on payday lenders Which? executive director, Richard Lloyd, said:
“It’s good to see the regulator tackling the eye-watering cost of payday loans, especially the excessive default charges that sting struggling borrowers and lead them into spiralling debt.
“Payday lenders have been running wild for too long and the FCA must keep them on a tight leash to protect consumers. The cap on the cost of loans should be kept under review and tightened up further if it doesn’t work as intended.”