Payday loans – Exploitation
A Labour government can quickly implement policies to get much needed help to households trapped in problems debt.
- Provide hard pressed households breathing space to recover from financial difficulties (effective protection from drivers of worsening debt problems: further interest and charges that inflate debts; pressure to meet unaffordable repayments; and collection and enforcement action by creditors.)
- Access to safer and more sustainable credit.
- Help households to build savings to protect against shocks.
The Financial Conduct Authority (FCA) is the body charged with regulating the payday loan industry in the UK and began regulating payday loans among other forms of high-cost short-term credit on 1st April 2014.