We're calling on the Financial Conduct Authority (FCA) to broaden its efforts to clean up the credit market, as our new report uncovers problems that are making it difficult for consumers to manage their borrowing and shop around.
Despite an improving economy, UK consumers' total unsecured debt remains at £158 billion and our new research reveals that eight in ten people used a credit product in last year. And a significant proportion of them run out of money by the end of every month.
At the same time, our new report identifies problems with all forms of credit and failures at every stage of the customer journey, making it difficult for consumers to manage their credit, to compare the cost of different types of credit and find the best deal for their needs.
Our executive director, Richard Lloyd, said:
'The regulator has so far rightly focused on the unscrupulous practices of payday lenders, however, we have found problems across the whole of the credit market. It’s now more important than ever that all credit products are up to scratch, so that consumers can more easily manage their borrowing.'
The FCA must crack down on poor practices and help put consumers back in control of their credit, and lenders should step up and improve their products and practices.
The Financial Conduct Authority (FCA) has proposed a 0.8% cap on the daily rate of a payday loan, meaning many lenders will have to cut their rates.