Which? response to new powers to strengthen consumer credit protection

Richard Lloyd, executive director, Which?

“Our research has found that people taking out payday loans are often caught in a downward spiral of debt so it is important that  the Office of Fair Trading will have the power to instantly suspend the credit licences of unscrupulous lenders caught breaking the existing rules.

“This is a good step  towards ensuring the regulator has the powers it needs to be a  more  proactive consumer watchdog. The Government must now introduce wider, tougher rules for payday lenders to better protect consumers, make sure the regulator has the resources it needs, and ensure there is no gap in supervision as  these powers transfer to the Financial Conduct Authority.”

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