FCA PRESS RELEASE:

A major UK payday lender has exited the single instalment payday loan market (i.e. loans that must be repaid in one lump sum) and promised to change the way it offers loans and treats customers struggling to repay their debts, following an agreement with the Financial Conduct Authority (FCA). As well as no longer selling single instalment payday loans, Cheque Centres Limited (Cheque Centre) has also stopped its debt collection telephone calls to customers until it demonstrates to the FCA that improvements have been made. Cheque Centre has agreed a number of other actions with the FCA so it can meet the new regulatory regime, and the FCA will appoint a skilled person to test the changes.


Martin Wheatley, the FCA’s chief executive, said:

“This is an early victory for people that use payday lenders. We made our tougher expectations clear to Cheque Centre and they have wasted no time in making changes. I have said before that firms would need to dramatically improve their operation or exit the market, and we are now seeing that happening.......Read more here