FSA clamps down on rogue lenders

Posted 2008-04-7

The Financial Services Authority (FSA) is to begin clamping down on the actions of unscrupulous lenders, it has been confirmed.

In what has been described as the "biggest shake-up of the consumer credit market for more than 30 years," the FSA is launching a series of new drives aimed at weeding out firms who intentionally offer irresponsible loans.

"There will be more protection for people who get caught out by rogue lenders who pretend to play by the rules but act like loan sharks," affirmed John Hutton, secretary of state for business and enterprise.

He listed examples of behaviour which has been deemed unacceptable, including the use of pressure sales tactics, unfair terms and conditions, unreasonably high interest rates and intimidating debt collection practices.

Under the new regulations, whose launch coincides with the start of the new financial year, the Office of Fair Trading will be able to fine unscrupulous lenders as much as £50,000 as well as stripping them of their licences.

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