The government has today announced plans to impose tougher restrictions on payday lenders, following a year-long investigation by the Office of Fair Trading (OFT).
Consumer Affairs minister Jo Swinson and Economic Secretary Sajid Javid spoke about the government's proposals to tackle payday lenders during a visit to meet staff from the Which? Money Helpline Service (see photo below).
The ministers acknowledged that the consumer credit market, including the payday loan sector, is letting consumers down. The government said that tough action is required to prevent payday lenders from taking advantage of vulnerable people. It confirmed that the new regulator will be given 'unprecedented new powers' to intervene in cases of irresponsible lending, including the ability to ban products and impose unlimited fines.