Payday loan brokers face crackdown

[Michael Browne]

Thousands of payday loan middlemen face tough new rules after the City watchdog highlighted "blatantly unfair" treatment of customers.

 

 

Borrowers have complained about credit brokers taking fees without permission for "half-hearted promises" of payday loans.

 

 

Some have complained that they thought the brokers were, in fact, lenders.

The Financial Conduct Authority (FCA) said clear contracts must be made explaining fees that could be levied.

 

 

 

New rules, that come into force on 2 January, mean that credit brokers must give clear information to customers about who they are, what fee is payable, and how payment can be made.

http://www.bbc.co.uk/news/business-30274718

 

 

 

 

New rules will protect consumers from harmful fee-charging credit broking practices

 

New rules have been introduced by the Financial Conduct Authority (FCA) today to tackle poor practice in the credit broking market which is causing serious detriment to consumers.

 

 

The rules will ban credit brokers from charging fees to customers, and from requesting customers’ payment details for that purpose, unless they comply with new requirements ensuring that customers are given clear information about who they are dealing with, what fee will be payable, and when and how the fee will be payable. The rules come into force on 2 January 2015.

 

http://www.fca.org.uk/news/new-rules-will-protect-consumers-from-harmful-fee-charging-credit-broking-practices