To ask the Chancellor of the Exchequer, what assessment he has made of the Financial Conduct Authority's ability to enforce their own affordability checks on high-cost credit.
Answered on
7 January 2019
The regulation of consumer credit is a matter for the Financial Conduct Authority (FCA). The Government has given the FCA strong powers to protect consumers and to take action against firms and individuals that do not meet its standards.
FCA rules are based on the principle that money should only be lent to a consumer if they can afford to repay it. The rules set out what is expected of firms, and the sanctions if they lend irresponsibly.
Furthermore, the FCA proactively monitors the market, focusing on the areas most likely to cause consumer harm. It has prioritised the high-cost credit sector, and taken action to ensure that firms are implementing its rules correctly.
Treasury ministers and officials meet regularly with the FCA, and the Government will continue to work closely with the FCA to ensure all customers are treated fairly.