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The Credit Services Association (CSA)
FCA publishes thematic review on high-cost short-term credit
Findings of the thematic review include:
- Some firms were engaging in misleading and unfair practices to seek payment from customers in arrears, for example, implying legal action would be taken when it wouldn’t; and misusing customer banking information.
- Poor management, poor recognition of customers with financial difficulties, failure to effectively direct people to free advice, where appropriate, and firms not giving all customers access to the full range of forbearance and repayment options.
- Repayment plans that were clearly unsustainable and subsequently failed;
The FCA reviewed a selection of smaller and large firms, representative of the payday market, including online and high street lenders. Information from the thematic review and ongoing investigative work will form part of the assessment of firms during the process for FCA authorisation.