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Consumer credit consultation

Have your say on the regulator's plans

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The Financial Conduct Authority took over regulation of consumer credit - including cards, loans and debt - on April 2014. It asked for your concerns and comments, particularly about payday loans.

The main focus was on payday loans and other high-cost short-term lending, as this is where many people have problems.

Read on for a summary of what the changes meant.

How to have your say

You can tell the regulator what you think in several ways, and you can use as many of them as you like. They include:

Post your point of view about Payday loans in the MSE forum

The FCA is proposing tougher requirements for payday lenders, including limiting the number of times a loan can be rolled over to two.

Payday lenders use rollovers to continuously extend customer's loans, so while a loan may be advertised as lasting for a month at a small cost, it is often rolled over time and time again and will end up lasting much longer. Some lenders actively encourage borrowers who want to repay to do this.

It also wants lenders to provide information on free debt advice before customers 'roll over' a loan, affordability checks for every credit agreement, while it says all adverts and promotions should be clear, fair and not misleading. So for example, payday loans must have risk warnings.

Do the proposals go far enough? How should lenders check someone can afford to repay the loan? What advice should be given if someone gets into financial difficulty?

Tell the FCA what you think in the Regulation of credit and payday lenders forum discussion.

Give additional ammunition to make adverts clearer

One of the specific new proposals is that adverts should have a 'wealth warning' attached so borrowers are more aware of the perils of payday loans before they take one out.

MSE's working with Citizens Advice to find out what people think of the regulator's proposed wealth warning.

The following will need to appear on all ads:

Think! Is this loan right for you?
Over 2 million short-term loans were not paid off on time in 2011/12. This can lead to serious money problems.
If you're struggling, go to for free and impartial help.

Would you find this useful? Would it put you off taking out a loan? What would you include in a wealth warning? Tell MSE and Citizens Advice in the Payday loan adverts forum discussion.

Help get irresponsible adverts banned, especially on kids' TV

After our shocking poll results which found almost 70% of under-16s have seen payday loan adverts, and nearly one in three parents say their kids see the ads as "fun", we've joined forces with Citizens Advice to get bad ads taken off the airwaves.

The Advertising Standards Authority (ASA) can ban irresponsible and misleading adverts wherever they appear, on TV, radio, billboard, magazine or internet. If you spot a bad ad, let the ASA know or tell us in the Payday loan adverts forum discussion so MSE and Citizens Advice an report it for you.

Also, please let us know if you've seen any of the Wonga film in a cinema near you, along with which movie you'd been to see and what you thought.

A payday loan could be irresponsible if:

  • It's clearly aimed at children.
  • It's targeted at vulnerable people.
  • It shows payday loans being used for shopping or social activities.
  • It suggests that a payday loan is a better idea than another type of loan.
Sign the 'Charter to Stop the Payday Loan Rip-off'

MP Paul Blomfield, along with debt, consumer and anti-poverty organisations, has launched a petition asking the regulator for tougher action and enforcement of payday lenders.

The petition adds: "We want action to support the growth of credit unions and other forms of more responsible lending; we want banks to increase the availability of credit to people on low and middle incomes; and we want new research on capping the total cost of credit undertaken now."

Read the full petition and sign it on the site.

Email the regulator with your views

Send an email with your overall concerns, general comments and/or personal experiences to

Read and respond to the full consultation

If you've lots of time on your hands and you want to read the full 193- page document, as well as respond to the complete set of 28 questions, you can find the whole consultation document on the FCA's website.

This is the official way to respond to the consultation and will go straight into the regulator's inbox but you can use the alternatives above if you prefer.

How the FCA plans to regulate credit and what that means for you

As far as possible the following text has been taken word for word from the FCA's website. We've copied it here to keep all the information in one place.

From here, this guide is in the FCA's own words... It is important for us to know what you think about the way we work. This helps us to do our job, ensuring that you are protected in financial services markets and can access suitable products from firms you can trust.

We have published a consultation paper asking for your feedback on how we want to regulate the firms that lend you money. Read on for an outline of our plans and details of how you can send us your views.

Background - what's happening?

On 1 April 2014 we take over regulation of the consumer credit industry - this includes hire purchase, credit card issuers, payday loan companies, pawnbrokers, debt management and collection firms and providers of debt advice.

We already have a handbook of rules and guidance that other financial services firms have to follow and comply with, and we are now preparing to bring consumer credit firms into that same regulatory system. We are currently consulting on exactly how we plan to do that and how we think it will affect firms and consumers.

For example, we know that some consumers who take out a payday loan often have problems paying it back. This worries us because these loans are often used by people in financial difficulty, so we're proposing to apply tighter rules than before to make sure payday lenders treat their customers fairly.

We want to hear from you, whether it's about your concerns, general comments or based on your own experiences. See below for more information on how we propose to regulate consumer credit firms.

Further reading

Authorisation - our gateway

How we will supervise firms to protect you

Rules and guidance for payday loan companies

Debt management companies and not-for-profit debt advice bodies

Enforcing our rules

Making complaints and claiming compensation

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