Since the Financial Conduct Authority (FCA) took over regulation of the consumer credit market from the Office of Fair Trading (OFT) in 2014, the payday loans industry has undergone significant regulatory reform and has changed for the better: consumers have greater protection from unfair lending practices; the loan application process has become more comprehensive; and the penalties for non-compliance are much higher.
We have some exciting news for you! The day has come; we have now received our official authorisation from the Financial Conduct Authority (FCA). This means that the FCA have taken an in-depth look at our business practices and management, and decided that we are worthy of their approval.
The Financial Conduct Authority (FCA) expects lenders to put consumers’ interest at the heart of their business and treat customers fairly at all times. As a compliant, responsible lender, we acknowledge and embrace this expectation.
The Competition and Markets Authority found during their market investigation into payday lending that most consumers taking out their first payday loan will return for further credit from a payday lender, and over 80% of loans made by payday lenders are to customers who have taken out a payday loan with them previously. The CMA said that customers’ demand for payday loans direct lenders is typically recurring.
Here at Uncle Buck we are seeing a greater proportion of complaints to us being about the affordability of lending, some complainants allege that we did not carry out proper checks prior to advancing the funds. It would be fair to say that there has been a definite spike following the publicity given to other lenders and redress offered by them to their customers.