Regulatory Alerts2018-01-31
High-cost credit review update
The Financial Conduct Authority issues an update on its review of high-cost credit, confirming the retention of the payday loan cap while identifying consumer harm risks in overdrafts and other products. The regulator highlights concerns regarding excessive fees for unarranged overdrafts and high costs in rent-to-own and home-collected credit sectors, noting that further analysis is required before final intervention decisions are made. The FCA plans to publish detailed findings in May 2018 and intends to consult on potential remedies by the end of 2018, potentially alongside its Strategic Review of Retail Banking.
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