Thousands of payday loan middlemen face tough new rules after the City watchdog highlighted "blatantly unfair" treatment of customers.
Borrowers have complained about credit brokers taking fees without permission for "half-hearted promises" of payday loans. Some have complained that they thought the brokers were, in fact, lenders. The Financial Conduct Authority (FCA) said clear contracts must be made explaining fees that could be levied. New rules, that come into force on 2 January, mean that credit brokers must give clear information to customers about who they are, what fee is payable, and how payment can be made. In addition, seven brokers have been stopped from taking on new business while investigations into their actions take place. Another three have already been told they could face a fine or lose their licence to operate.....Read more here