Labour Wants Payday Loan Cap Brought Forward.

[Tawnyowl]

Labour wants payday loan price cap brought forward

 

 

The FCA will take over payday loan regulation next April after the Government suffered defeat from Labour amendments to the Financial Services Act 2012.

The Government amendment states the FCA will only introduce the payday loan cap on 2 January 2015, giving it time to consult on how to implement the cap.

In its own House of Lords amendment, published today, Labour wants the date brought forward to 1 October 2014.

Labour says the cap must be in place in time for next Christmas, highlighting Money Advice Service research showing more than one million people take out payday loans for Christmas.

 

http://www.moneymarketing.co.uk/news-and-analysis/politics/labour-wants-payday-loan-price-cap-brought-forward/2004156.article

 

 

 

The cost of payday loans will be capped under a new law, George Osborne announced this . Sadly, he failed to tell the City watchdog which is currently reviewing the high-cost credit sector.

 

The Financial Conduct Authority (fca) has been forced to hastily arrange meetings in the next few weeks with consumer groups and debt charities to discuss the practicalities of a cap.

The Chancellor apparently caved in to demands to impose a cap in order to avoid a threatened parliamentary rebellion which was backed by the Archbishop of Canterbury, Justin Welby However, behind the political blustering is the fact that it will be more than a year before any cap will be introduced. At a debt discussion I attended in Westminster on Thursday, Christopher Woolard, director of policy, risk and research at the Financial Conduct Authority, revealed that a cap on the cost of

payday loans won't be introduced before 2015.

 

http://www.independent.co.uk/money/l...h-8973896.html

 

 

Just found this,so at the moment it seems it will be another Christmas at least before anything is done.

 

 

An opposition move to bring the date forward to October next year was rejected by 163 votes to 100, Government majority 63.

Labour's Lord Mitchell said this would have prevented another "rip-off Christmas for consumers".

But Lord Newby said the FCA was going as quickly as it could and must be allowed to "get it right".

Opposition spokesman Lord Eatwell warned: "The Government has been dragging its feet for four years and it is really incumbent to take swift action."

http://www.moneymarketing.co.uk/news-and-analysis/politics/labour-wants-payday-loan-price-cap-brought-forward/2004156.article

 

What was hoped for.Stopping the legal loan sharks targeting communities for another Christmas.

It is little known that the payday lending companies are getting financial support from the City. I had read that Barclays had lent Wonga over £250 million, but when I investigated further I found that the number was very much higher. If you consider what the clearers in total and the other financial institutions lend to all the payday lending companies the number we are talking many billions of pounds. The City purports to have washed its hands of this grubby sector, but in truth they participate, using payday lenders as surrogates.

 

Of course i may appear impatient,maybe the FCA does need another year to get it right.

In that case the thought is.

House of Lords kneecap payday lenders. One more year of 6,000% then no longer Wonga. Good day on the planet.

Or-Not much longer, Wonga.

 

http://www.labourlords.org.uk/90-day-challenge

 

 

Just in case anyone wants to listen

Peers discuss cap on interest for paydayloans and anti-money laundering compliance as banking reform bill continues Starts about 21-46

http://www.parliamentlive.tv/Main/Player.aspx?meetingId=14355

Edited December 10, 2013 by tawnyowl

[Tawnyowl]

I feel there is a slight possibility of caps coming in before the lenders have Christmas 2014 to drain the pockets of the people of Great Britain.

Bad enough they have another year to make hay while the sun shines.

But the FCA are waiting for the report from the Competition Commission due in April to really get to grips with things.To consider the report.

The CFPB in America are tightening up now.Similar to the FCA.

Meetings must now be underway.So when the FCA starts using its power it may just shock some and may just may use this power earlier.

It could,well we will see.I will put some articles on shortly.And as time moves on.

It may not need to wait till 2015.

I mean what is a couple of months if the will is there to take this forward.I still hope for late 2014

Well supporters of the Caps will hope so.

There is enough evidence out there.Do you think it will really need 6 months or more to act.

Edited December 12, 2013 by tawnyowl