FCA issues ‘Dear CEO’ letter to lenders offering high-cost short-term credit

The Financial Conduct Authority (FCA) has issued a ‘Dear CEO’ letter to payday lenders offering high-cost short-term credit (HCSTC). This letter has been written in response to an increase in complaints about unaffordable lending to the Financial Ombudsman Service (FOS), including the impacts of a ‘chain’ of loans over an extended period. The FCA exhibits concern that remediation costs may affect the viability of some HCSTC firms.

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